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Research Paper | Accounting | Indonesia | Volume 8 Issue 3, March 2019

Intellectual Capital Disclosure in Indonesia

Ni Ketut Kartika Amanda Astiti | Ni Made Dwi Ratnadi | Nyoman Wijana Asmara Putra | Gayatri ^[51]

Abstract: Technological developments that occur in the knowledge-based era force companies to no longer depend on tangible assets such as land, buildings, and property, but also intangible assets such as knowledge and information technology. Several companies in Indonesia have implemented the use of intellectual assets owned, this is indicated by the increasing number of companies that use the basis of technology and knowledge in carrying out their activities and then report on the use of intellectual assets to stakeholders. This is in accordance with resource based theory (RBT) which states that if the company owns and manages resources efficiently and effectively, the company will have good financial performance and have an impact on firm value that also increases. The research objective is to prove empirically the effect of intellectual capital disclosure on firm value with profitability as an intervening variable. The population used is companies in the financial, telecommunications and pharmaceutical industry groups listed on the Indonesia Stock Exchange in 2012-2017. The method of determining the sample is purposive sampling, obtained by 43 companies. Data were analyzed by path analysis. The results of the analysis show that the higher disclosure of the company's intellectual capital causes profitability to decline. The higher the company's ability to generate profits causes firm value tends to increase. The higher disclosure of the company's intellectual capital causes the market to appreciate with increasing market value. And the higher the disclosure of intellectual capital causes profitability as short-term performance decreases but causes firm value as a long-term performance tends to increase.

Keywords: disclosure of intellectual capital, profitability, firm value

Edition: Volume 8 Issue 3, March 2019,

Pages: 1759 - 1764

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