ANALYSIS OF THE INFLUENCE OF INTELLECTUAL CAPITAL, POLITICAL RELATIONS, AND CARBON EMISSIONS ON FINANCIAL PERFORMANCE AT PT ULTRAJAYA MILK INDUSTRY TBK. (ULTJ) YEAR 2019-2024

Abstract

This study aims to analyze the influence of intellectual capital, political relations, and
carbon emissions on the financial performance of PT Ultrajaya Milk Industry Tbk.
(ULTJ) for the 2019–2024 period. The research uses an explanatory quantitative
approach with secondary data obtained from the company's annual reports and
sustainability reports. Financial performance variables are measured by Return on
Assets (ROA), intellectual capital using the Value Added Intellectual Coefficient
(VAIC™) model, political relations are measured by dummy variables, and carbon
emissions using the Carbon Emission Disclosure Index (CEDI). Data analysis was
carried out using panel data regression through the Eviews 12 software. The results of
the study show that intellectual capital has a positive and significant effect on financial
performance, which means that the efficiency of intellectual resource management can
increase profitability. Political relations have a significant negative effect on financial
performance, indicating that political involvement in management can reduce the
operational efficiency of the company. Meanwhile, carbon emissions have a
significant positive effect on financial performance, which shows that transparency
and environmental responsibility strengthen the company's reputation and investor
confidence. Simultaneously, these three variables had a significant effect with a
determination value of 72.1%. These findings underscore the importance of
intellectual capital efficiency, independent governance, and a commitment to
sustainability in improving a company's financial performance.