Impact of Intellectual Capital and Leverage on Profitability and Their Implications for Firm Value in Indonesian Healthcare Providers
Journal Title: Journal of Corporate Governance, Insurance, and Risk Management - Year 2024, Vol 11, Issue 2
Abstract
This study examines the impact of intellectual capital and leverage on profitability, along with their implications for firm value, focusing on healthcare provider companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022. A purposive sampling method was employed, resulting in a sample of seven healthcare provider companies. Secondary data were extracted from the companies' annual reports, with intellectual capital measured using Pulic’s Value-Added Intellectual Coefficient (VAIC) model, leverage assessed through the debt ratio, profitability evaluated via return on equity (ROE), and firm value gauged by the price-to-book ratio (PBR). Multiple and simple linear regression analyses were conducted to investigate the relationships between these variables. The findings reveal that both intellectual capital and leverage significantly influence profitability, accounting for 69.18% of its variation. Furthermore, profitability is found to significantly impact firm value, explaining 70.79% of its variation. These results indicate that intellectual capital plays a critical role in enhancing profitability, while leverage also contributes to profitability, which in turn, significantly affects firm value. The implications of these findings suggest that healthcare providers in Indonesia could optimize their financial strategies by focusing on intellectual capital and leverage to enhance profitability and, consequently, firm value. This study contributes to the existing literature by providing empirical evidence from the Indonesian healthcare sector and offers insights for both practitioners and policymakers aiming to enhance firm value through strategic financial management.
Authors and Affiliations
Adi Anggoro Parulian, Atang Hermawan, Popo Suryana, Hedie Kristiawan, Yura Witsqa Firmansyah, Bhisma Jaya Prasaja, Gracelia Maharani, Audria Ineswari Mulya Marhadi, Roma Ave Maria
Keywords
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- EP ID EP743954
- DOI https://doi.org/10.56578/jcgirm110201
- Views 35
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