Corporate governance, intellectual capital, and performance of indonesian public company

Sri Mangesti Rahayu; Wita Ramadhanti

doi:10.14414/jebav.v21i3.1470

Authors

Sri Mangesti Rahayu Brawijaya University
Wita Ramadhanti Jenderal Soedirman University

DOI:

https://doi.org/10.14414/jebav.v21i3.1470

Keywords:

Female Director, Public Ownership, Good Corporate Governance, Intellectual Capital, Performance

Abstract

Two important issues for companiesâ€™ sustainability are corporate governance and intellectual capital. This research is intended to test the relation between corporate governance, intellectual capital and companiesâ€™ performance. This is a quantitative research with archival data. The data is taken from Financial Reports and Annual Reports of Indonesia Public Company during 2011-2016. Corporate governance is measure using proportion of female director and public ownership. Intellectual capital indicators are CEE (Capital Employed Efficiency) and ICE (Intellectual Capital Efficiency). Companiesâ€™ performance construct are Tobinâ€™s Q and Return on Assets (ROA) Data then analysed using Partial Least Square. The empirical results is as follows. First, Corporate Governance has positive effect on Intellectual Capital. Second, there is negative effect of Corporate Governance on Performance. Third, Intellectual capital has no effect on firmâ€™s performance. Fourth, Intellectual capital has no mediating effect to the the relation between corporate governance and companyâ€™s performance. This results are prove that Agency Theory is the better than Resources Based Theory to explain the Indonesia public companies condition.

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