Intellectual Capital and Corporate Financial Performance of Selected Listed Companies in Indonesia


  • Dominique Razafindrambinina BINUS University
  • Talita Anggreni PT Bank CIMB Niaga


Financial performance, intellectual capital


The main focus of this research is to investigate the relationship between intellectual capital (IC) and corporate financial performance of selected listed companies in Indonesia. Unlike financial and physical assets, intangible assets are difficult to emulate, which makes them a powerful source of competitive advantage. The study uses data from consumer goods firms listed on the Jakarta Stock Exchange. Pulic’s Value Added Intellectual Coefficient (VAIC) model is utilised as the efficiency measure of capital employed, both human and structural capital. The regression model explores the relationship between intellectual capital and its contribution to the financial performance of firms in both current and future years. The results reveal that intellectual capital does contribute to the financial performance, with the exception of revenue growth of consumer goods firms in Indonesia. Furthermore, findings suggest that future performance is also affected by the level of intellectual capital. Finally, evidence shows that capital of physical, financial and structural nature is the most significant underlying driver of corporate performance. Although insignificant, human capital has a positive and consistent role in revenue growth. This paper contributes to the understanding that in creating corporate value, Indonesian investors placed less weight on the potential of intellectual capital.


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Author Biography

Dominique Razafindrambinina, BINUS University

BINUS Business School, BINUS University