A Determinants of Financial Performance and Their Impact on Firm Value in the Building Construction Industry Sub-Sector
DOI:
https://doi.org/10.54099/ijibmr.v2i2.387Keywords:
Corporate Governance, Social Responsibility, Intellectual Capital, Performance, , managerial ownership, firm size, company financial performance, firm value.Abstract
This study aims to analyze the effect of intellectual capital, managerial ownership, company size and company financial performance on firm value. This research was conducted at building construction industry sub-sector companies listed on the Indonesia Stock Exchange for the observation period from 2017 – 2021. A total sample of 9 companies was obtained using a purposive sampling technique. This study used panel data regression analysis with STATA 17 software. The results showed that intellectual capital had a positive and significant effect on the company's financial performance, while managerial ownership and company size had a negative and significant effect. Intellectual capital has a positive and insignificant effect on firm value, while managerial ownership and firm size have a negative and significant effect. The company's financial performance has a positive and significant effect on firm value, and is able to mediate the influence of intellectual capital on firm value. However, the company's financial performance is not able to mediate the effect of managerial ownership and company size on firm value. This research will have an impact on increasing understanding and consideration for investors when making decisions to invest in the Indonesian Stock Exchange.
References
Aida, RN, & Rahmawati, E. (2015). The Effect of Intellectual Capital and Its Disclosure on Firm Value: Intervening Effects of Firm Performance. Journal of Accounting and Investment, 16(2), 96-109,DOIs:https://doi.org/10.18196/jai.2015.0035.96-109
Barako, DG, Hancock, P., & Iza, HY (2006). Factors Influencing Voluntary Corporate Disclosure by Kenyan companies. Journal Compilation © Blackwell Pulishing Ltd, 14(2), 107-125.
Belkaoui, AR (2007). Accounting Theory. 5th Edition. Book 2. Translated Edition. Jakarta: Salemba Empat.
Brigham, Eugene F. and Joel F. Houston. (2014). Fundamentals of Financial Management. Book 1. Edition 11. Jakarta: Salemba Empat.
Brealey, AR, Myers, SC, & Marcus, AJ (2007). Fundamentals of Corporate Financial Management. Jakarta: Erlangga.
Bukh, et al. 2001. Valuing the future: intellectual capital supplements at Skandia. Accounting, Auditing & Accountability Journal, 14(4), 399-422.
Cristiawan, YJ, & Tarigan, J. 2007. Managerial Ownership: Debt Policy, Performance and Firm Value. Journal of Accounting and Finance, 9(1), 1-8.
Deegan, C. 2004.Financial Accounting Theory. Sydney: McGraw-HillBook Company.
Replace, R., Tiurma, PM, Setiyati, R., & Saudi, MH (2021). The Comparison of The Influence Of Intellectual Capital, Managerial Ownership, Institutional Ownership And Corporate Social Responsibility On Company Financial Performance (Empirical Study of Coal Mining and Infrastructure Sub-Sector Companies Registered on the Indonesia Stock Exchange for the 2014-2018 Period). Review Of International Geographical Education, 11(6), 1168-1177.
Ghozali, I. & Chariri, A. (2007). Accounting Theory. Semarang: Diponegoro University Publishing Agency.
Gustiana, R., Nor, W., & Hudaya, M. (2019). The Influence of Corporate Governance and Company Size on Financial Performance and Firm Value with Sustainability Reporting as Intervening Variables. Journal of Accounting and Taxation Research), 6(2), 81–96.
Handini, S. (2020). Financial management. Surabaya: Scopindo Media Pustaka. First Print.
Hadiwijaya, RC, & Rohman, A. (2013). The Effect of Intellectual Capital on Firm Value with Financial Performance as an Intervening Variable. Diponegoro Journal of Accounting, 2(3), 1-7.http://ejournal-s1.undip.ac.id/index.php/accountingISSN
Hamida, Ahmad, GN, & Aulia, R. (2015). EFFECT OF INTELLECTUAL CAPITAL, CAPITAL STRUCTURE AND MANAGERIAL OWNERSHIP TOWARD FIRM VALUE OF MANUFACTURING SECTOR COMPANIES LISTED IN INDONESIA STOCK EXCHANGE (IDX) PERIOD 2010-2014. Indonesian Science Management Research Journal, 6(2), 558-578,DOI:https://doi.org/10.21009/JRMSI.006.2.04
hydrinist, M. (2019). Capital structure and firm size on firm value moderated by profitability. International Journal of Economics and Business Administration, 7(1), 174-191,DOI:https://doi.org/10.35808/ijeba/204
Hermuningsih, S. (2012). The Effect of Profitability, Size on Firm Value with Capital Structure as an Intervening Variable.Business Strategy Journal,16(2), 232-242, DOI:https://doi.org/10.20885/jsb.vol16.iss2.art8
HorneJames C. Van and John M. Wachowicz. (2009). Jakarta Financial Management Principles: Salema Empat.
Science, M., Kustono, AS, & Sayekti, Y. (2017). Effect Of Good Corporate Governance, Corporate Social Responsibility Disclosure And Managerial Ownership To The Corporate Value With Financial Performance As Intervening Variables: Case On Indonesia Stock Exchange. In International Journal of Social Science and Business, 1(2), 75-88.
Jensen, MC, & Meckling, WH (1976). Theory of The Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal Of Financial Economics 3, pages 305-360.
thank you, A., & Heliantono, D. (2016). Intellectual Capital of Public State-Owned Banks and Their Influence on Company Performance. MIX. Scientific Journal of Management, June 2016, VI(2), 195-.
Manurung, AH (2012). Corporate Finance Theory. Jakarta: PT Adler Manurung Press.First Print.
Maryanto, HK (2017). THE EFFECT OF INTELLECTUAL CAPITAL AND GOOD CORPORATE GOVERNANCE ON COMPANY VALUE WITH FINANCIAL PERFORMANCE AS AN INTERVENING VARIABLE IN MANUFACTURING COMPANIES ON THE INDONESIA STOCK EXCHANGE 2011-2014. JOM Fekom, 4(1), 1598-1612.
Nafiroh, S., & Nahumury, J. (2016). The influence of intellectual capital on company value with financial performance as an intervening variable in financing institutions in Indonesia. The Indonesian Accounting Review, 6(2), 159–170, DOI:https://doi.org/10.14414/tiar.v6i1.604
Nurwahidah, N., Husnan, LH, & AP, INN (2019). The Effect of Managerial Ownership on Firm Value with Capital Structure and Profitability as Intervening Variables in Real Estate Companies on the Indonesia Stock Exchange. JMM UNRAM – Master of Management Journal, 8(4), 363–377, DOI:https://doi.org/10.29303/jmm.v8i4.460
Nurwulandari, A., Wibowow, Y., & Hasanudin. (2021). Effect of Liquidity, Profitability, Firm Size on Firm Value with Capital Structure as Intervening Variable. ATESTATION : Scientific Journal of Accounting, 4(2), 257–271.https://doi.org/10.33096/atestasi.v4i2.835
Oktaviarni, F., Murni, Y., & Suprayitno, B. (2019). THE EFFECT OF PROFITABILITY, LIQUIDITY, LEVERAGE, DIVIDEND POLICY, AND SIZES ON COMPANY VALUE (Empirical Study of Real Estate, Property and Building Construction Sector Companies Registered on the Indonesia Stock Exchange 2014-2016). Journal of Accounting, 9(1), 1-16, DOI:https://doi.org/10.33369/j.accountancy.9.1.1-16
Pulic, A. 1998. Measuring the performance of intellectual capital potential in the knowledge economy. Paper presented at the 2nd McMaster Word Congress on Measuring and Managing Intellectual Capital by the Austrian Team for Intellectual Potential.
Putranto, P., & Kurniawan, E. (2018). Effect of Managerial Ownership and Profitability on Firm Value (Empirical Study on Food and Beverage Industrial Sector Companies 2012 to 2015). European Journal of Business and Management, 10(25), 96-104.
Rahayu, DP (2019). The Effect of Intellectual Capital Disclosure, Corporate Governance, and Firm Size on Firm Value. International Conference on Economics, Management, and Accounting, KnE Social Sciences, pages 530–548, DOI:https://doi.org/10.18502/kss.v3i26.5399
Rustendi, T., & Jimmi, F. 2008. The Influence of Debt and Managerial Ownership of Companies in Manufacturing Companies. Journal of Accounting FE Unsil, 3(1), 411-422.
Sah'idah, JR, Wahyuningtyas, T., & Susesti, DA (2020). IDENTIFICATION OF DETERMINANTS OF CORPORATE VALUE IN IDX LISTED CONSTRUCTION COMPANIES. NATIONAL CONFERENCE FOR UMMAH (NCU), 1(1), Retrieved fromhttps://conferences.unusa.ac.id/index.php/NCU2020/article/view/615
Salim, M. Noor, & Firdaus, Z. (2020). Determinant of Firm Value and Its Impact to on Stock Prices (Study in Consumer Good Public Companies in IDX 2014-2018). Dynasty International Journal of Education Management and Social Science, 2(1), 41-54,https://doi.org/10.31933/DIJEMSS
Salim, M. Noor, & Aulia, S. (2021). Analysis of the Determinant of the Dividend Payout Ratio and Its Impact on the Firm Value (Empirical Study on Food and Beverage Industry Issuer 2016-2019). International Journal of Engineering Technologies and Management Research, 8(9), 46-59, DOI:https://doi.org/10.29121/ijetmr.v8.i9.2021.1017
Salim, M. Noor, & Djausin, RPI (2020). Determinant of Financial Performance and Its Impact to The Growth of Islamic Bank Assets in Indonesia. International Journal of Business, Economics and Management, 2020, 7(1): 27-41, DOI: 10.18488/journal.62.2020.71.27.41
Salim, M. Noor, & Susilowati, R. (2019). The effect of Internal Factors on Capital Structure and Its Impact on The Firm Value: Empirical Evidence from The Food and Beverages Industry Listed on Indonesia Stock Exchange 2013-2017. International Journal of Engineering Technologies and Management Research, 6(7), 173-191. DOI: 10.5281/zenodo.3359550.
Salim, M. Noor, & Wahyuni, ES (2019). The effect of Internal, External Factors on Corporate Performance and Its Impact on Corporate Values in Indonesia Manufacturing Companies in The Automotive Sub Sector and Its Components in 2008-2017. International Journal of Engineering Technologies and Management Research, 6(6), 101-115. DOI: 10.5281/zenodo.3266140.
Salim, M. Noor, & Winanto, HA (2020). Determinant Return on Assets and Its Impact on Assets Growth (Case Study of Sharia General Banks in Indonesia). Journal of Economics and Business, Vol.3, No.1, 282-294. DOI: 10.31014/aior.1992.03.01.197
Siagian, H.L. (2020). Managerial Ownership, Dividend Policy, And Intellectual Capital On Corporate Value With Profitability As An Intervening Variable: An Evidence Of Real Estate And Property Companies In Indonesia Stock Exchange. Jurakunman, 13(2), 38-52.
Sihombing, P. (2018). Corporate Financial Management. Bogor: IPB Press Publisher. Print 1.
Soewarno, N., Hilal, A., & Ramadhan, A. (2020). The Effect of Ownership Structure and Intellectual Capital on Firm Value with Firm Performance as an Intervening Variable. In International Journal of Innovation, Creativity and Change, 10(12), 215-236.
Sudiyatno, B., Puspitasari, E., Suwarti, T., & Asyif, MM Determinants of Firm Value and Profitability: Evidence from Indonesia. Journal ofAsianFinance, Economics and Business, 2020, 7(11): 769–778.https://doi.org/10.13106/jafeb.2020.vol7.no11.769
Suroso, S., Widyastuti, T., Salim, MN, & Setyawati, I. (2017). Intellectual Capital and Corporate Governance in Financial Performance Indonesia Islamic Banking. International Journal of Economics and Financial Issues, 7(4), 96-103.
UlumMD, I. (2009).Intellectual Capital: Concepts and Empirical Studies. Yogyakarta: GRAHA SCIENCE. First Print.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 International Journal of Islamic Business and Management Review
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
