THE IMPACT OF INTELLECTUAL CAPITAL ON BANKS GO PUBLIC’S MARKET VALUE AND FINANCIAL PERFORMANCE LISTED IN INDONESIA STOCK EXCHANGE (IDX)

Abstract

This study aims to examine the influence of the Intellectual Capital on Banks Go Public’s Market Value and Financial Performance. By using a Pulic’s model-Value Added Intelletual Coefficients (VAIC ^TM), this study examined the impact of the efficiency of value
added (VAIC) of the company's three main resources (physical capital, human capital and structural capital) on firm’s market value (MtBV and EPS ) and financial performance (productivity ATO and company growth GR) using multiple linear regression method for data analysis. Data obtained from 31 banks go public in Indonesia Stock Exchange for the four
periods, 2007-2010. Data analysis techniques using classical assumption test and regression analysis. The findings of this study indicate that there is significant influence of intellectual capital (VAIC) on firm’s market value (MtBV and EPS). While the third component of the IC of the most influential of the market value is the capital employed (VACA) and structural capital (STVA). This study does not prove the influence of intellectual capital (VAIC) on firm’s the productivity (ATO). While the IC effect on growth (GR). And of the three components of IC, only VACA found influence on firm’s financial performance (ATO).