FINANCIAL PERFORMANCE ON STOCK PRICE OF FINANCE COMPANIES
By
Naqhita Suhanda 13111059
BACHELOR’S DEGREE in
ACCOUNTING
FACULTY OF BUSINESS ADMINISTRATION AND HUMANITIES
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia
August 2015
Revision after the Thesis Defense on 11 August 2015
Naqhita Suhanda
STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Naqhita Suhanda
____________________________________________
Student Date
Approved by:
Ir. Nurdayadi M.Sc
____________________________________________
Thesis Advisor Date
Prof. Eric J. Nasution MBA, MA, Phd
____________________________________________
Dean Date
Naqhita Suhanda
ABSTRACT
THE RELATIONSHIP ANALYSIS OF INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE ON STOCK PRICE OF FINANCE COMPANIES
By
Naqhita Suhanda Ir. Nurdayadi, M.Sc, Advisor
SWISS GERMAN UNIVERISTY
For the last couple of decades, intangible assets, particularly intellectual capital (IC), shows a significant growing and have become one of the fundamental factors in creating corporate sustainable competitive advantages. The purpose of this study is to examine the relationship between intellectual capital and financial performance on stock price.
The data were taken from audited financial report and annual report, and stock price history of 12 publicly listed finance companies from 2010 to 2014 which are available at Indonesia Stock Exchange official website and Indonesian Capital Market Electronic Library.
The result shows a positive relationship between intellectual capital towards financial performance, stock price and a positive relationship between financial performances on company’s stock price.
Keywords: Intellectual Capital, Financial Perofrmance, Stock Price, Finance Industry,
Naqhita Suhanda
© Copyright 2015 By Naqhita Suhanda
All rights reserved
Naqhita Suhanda
DEDICATION
I dedicate this works to my mom and dad.
Naqhita Suhanda
ACKNOWLEDGEMENTS
First, I would like to thank Allah SWT for His never ending blessing to me, thank you for giving me the strength, the healthiness, the love and support from many people during my thesis work. I would not be able to finish this work without your permission.
My mom and dad, thank you for always be there for me, I could not asked for a better parents.
Mr Nurdayadi, I would like to express the deepest appreciation for your patience, guidance, time, and knowledge for the past four months. Thank you very much for always try your best in order to answer my questions for thesis. I am very thankful to have you as my advisor.
Mr Indra Pratama, thank you for your help, support, and kindness for the last 3 years The last one is for my accounting 2011 classmates, thank you for everything.
Naqhita Suhanda
TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
LIST OF TABLES ... 10
CHAPTER 1 - INTRODUCTION ... 11
Background ... 11
Research Problems ... 11
Research Objectives ... 12
Research Questions ... 12
Significance of Study ... 12
Scope and Limitation ... 13
Thesis Structure ... 13
CHAPTER 2 - LITERATURE REVIEW ... 15
Finance Companies ... 15
Intangible Asset ... 15
Intellectual Capital ... 15
Intellectual Capital Components ... 18
Intellectual Capital Measurements ... 21
Value Added Intellectual Coefficient (VAIC™) ... 23
Corporate Stock ... 28
Total Asset and Receivable Turnover ... 29
Profitability ratio ... 29
2.8.1 Return on Asset (ROA) ... 30
2.8.2 Return on Equity (ROE) ... 30
2.8.3 Earnings per Share (EPS) ... 30
Naqhita Suhanda
2.8.4 Price Earnings Ratio (PER) ... 30
Solvency Ratio ... 31
2.9.1 Debt Equity Ratio ... 31
Stock Price ... 31
Previous Studies ... 33
Theoretical Framework ... 37
CHAPTER 3 - RESEARCH METHOD ... 38
Population and Sampling ... 38
Data Sources and Collection ... 38
Research Model ... 39
Method of Data Analysis ... 41
Variables ... 42
Hypothesis ... 43
CHAPTER 4 – RESULT AND DISCUSSION ... 44
Industry Overview ... 46
Industry Performance ... 50
4.2.1 Intellectual Capital ... 50
4.2.2 Return on Asset ... 55
4.2.3 Return on Equity ... 56
4.2.4 Earnings per Share ... 56
4.2.5 Price Earnings Ratio ... 57
4.2.6 Debt Equity Ratio ... 58
Statistics Analysis ... 60
4.3.1 Multiple Regression Analysis ... 60
4.3.2 Hypothesis Analysis ... 62
CHAPTER 5 – CONCLUSION ... 71
Conclusion ... 71
Recommedations ... 71
GLOSSARY ... 73
REFERENCES ... 75
APPENDICES ... 83
APPENDIX A – Hypothesis Summary ... 83
Naqhita Suhanda
APPENDIX B – SPSS Result Finance Industry ... 84
APPENDIX C - SPSS Result Big 5 Finance Companies ... 86
CURICULUM VITAE ... 88
LIST OF FIGURES Page Figure 4. 1 Stock Price Tendency of Finance Companies ... 49
Figure 4. 2 Stock Price Tendency of Adira Dinamika Multi Finance and BFI ... 49
Figure 4. 3 Average Intellectual Capital Finance Industry ... 51
Figure 4. 4 Average Employee Composition Based On Educational Level Finance Industry ... 53
Figure 4. 5 Average Employee Composition Based On Educational Level Adira, Wahana, Mandala, BFI, and Buana ... 53
Figure 4. 6 Average Employee Composition Adira Dinamika Multi Finance ... 54
Figure 4. 7 Average ROA of Finance Industry ... 55
Figure 4. 8 Average ROE of Finance Industry ... 56
Figure 4. 9 Average Earnings per Share for Finance Industry ... 56
Figure 4. 10 Average Price Earnings Ratio for Finance Industry ... 58
Figure 4. 11 Average Debt Equity Ratio for Finance Industry ... 58
