The Components of Intellectual Capital and Firm Performance: An Investigation of Indonesian Banking Companies

Agustina Dian Putri Manurung; Isfenti Sadalia; Syahyunan

Agustina Dian Putri Manurung Universitas Sumatera Utara
Isfenti Sadalia Universitas Sumatera Utara
Syahyunan Universitas Sumatera Utara

Keywords: capital employed, firm performance, human capital, intellectual capital, structural capital

Abstract

This paper investigates whether intellectual capital components (capital employed, human capital, structural capital) have meaningful information on firm performance. 39 listed Indonesian banking companies make up the full sample, which was chosen between 2017 and 2021 based on a number of factors. This study is quantitative, employing panel data regression as the research model and E-Views as the testing tool. Additionally, we discovered a strong detrimental impact of VACA on firm performance as well as a big favorable impact of VAHU. However, we were unable to demonstrate the impact of STVA on firm performance in our study. Based on our research, we advise managers to enhance their management of the company's financial resources and its people resources, both of which will benefit the business in the long run.