ABSTRACT

Nowadays, Intellectual capital (IC) has a key role in the effort to increase the value of various companies. This is due to the awareness that IC is a platform for companies to be more competitive. The purpose of this study is to investigate the influence of the Intellectual Capital of the firms toward their financial performance, growth and market value. Furthermore, the purpose of this study is also to investigate differentiation of Intellectual Capital Performance in each industry. The Value Added Intellectual Coefficient (VAIC TM) method is used to measure the Intellectual Capital. This study uses the data of 112 go-public companies listed in the Indonesia Stock Exchange in the periods of 2006 to 2008. Partial Least Square (PLS) and one-way ANOVA are applied for data analysis. The findings show that: Intellectual Capital positively influences financial performance and growth, but not to market value. Moreover, Intellectual Capital positively influences to company's financial performance in the future. The Performance of Intellectual Capital is different for each industry.

Key words: Intellectual Capital, financial performance, growth, the firm's market value, Partial Least Square (PLS).

JEL classification codes: O16 (Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance)

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