Corporate governance, intellectual capital, and performance of In-donesian public companies
Journal Title: Journal of Economics, Business, & Accountancy Ventura - Year 2018, Vol 21, Issue 3
Abstract
The two important issues for companies’ sustainability are corporate governance and intellectual capital. This research is intended to test the relationship between corporate governance, intellectual capital, and companies’ performance. This is a quantitative research using archival data taken from the financial reports and annual reports of Indonesia punlic companies during 2011-2016. Corporate governance was measured using the proportion of female directors and public ownership. Intellectual capital indicators are CEE (Capital Employed Efficiency) and ICE (Intellectual Capital Efficiency). The companies’ performance constructs are Tobin’s Q and Return on Assets (ROA). The data were analysed using Partial Least Square. The results shows, firstly, that Corporate Governance has positive effect on Intellectual Capital. Secondly, corporate governemtn has a negative effect on the company’s performance. Thirdly, Intellectual capital has no effect on the company’s performance. Fourthly, Intellectual capital has no mediating effect in the relationship between corporate governance and company’s performance. The results proved that Agency Theory is the better than Resources-Based Theory for explaining the condition of Indonesia public companies.
Authors and Affiliations
Sri Mangesti Rahayu, Wita Ramadhanti
Keywords
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- EP ID EP545782
- DOI 10.14414/jebav.v21i3.1470
- Views 57
- Downloads 0
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