Vol. 6 No. 1 (2016), Articles
Vol. 6 No. 1 (2016)

The effect of intellectual capital on the financial performance of insurance companies listed on the Indonesia Stock Exchange (ISE)

Articles
DOI: 10.14414/tiar.v6i1.852
Published 2017-02-06
Putri Alif Arifa
STIE Perbanas Surabaya
Nurmala Ahmar
STIE Perbanas Surabaya

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Keywords

Intellectual Capital
Financial Performance
Insurance Company
and Partial Least Square.

How to Cite

Arifa, Putri Alif, and Nurmala Ahmar. “The Effect of Intellectual Capital on the Financial Performance of Insurance Companies Listed on the Indonesia Stock Exchange (ISE)”. The Indonesian Accounting Review, vol. 6, no. 1, Feb. 2017, pp. 45-54, https://doi.org/10.14414/tiar.v6i1.852.
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Abstract

The purpose of this study is to analyze the effect of Intellectual Capital (VAICTM), with major components of physical capital (VACA), human capital (VAHU), and structural capital (STVA), on financial performance, with indicators of Return on Assets (ROA) and Return on Equity (ROE). Data are taken from 10 insurance com-panies listed on the Indonesia Stock Exchange for four years, 2010-2013. The support-ing data include reference books and journals of previous researches. The data analysis is conducted using Partial Least Square (PLS). The results show that intellectual capital (VAICTM) has significant effect on the financial performance. Physical capital (VACA) and human capital (VAHU) are significant indicators for VAICTM. Mean-while, structural capital (STVA) is not significant. The indicators of financial perfor-mance, both ROA and ROE, are significantly affected by intellectual capital for four years.