By
Joseph Ardy Prisa 2-1753-003
MASTER’S DEGREE in
MASTER BUSINESS ADMINISTRATION BUSINESS AND COMMUNICATION
SWISS GERMAN UNIVERSITY The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia
March 2019
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.
Revision after the Thesis Defense on [22/03/2019]
Joseph Ardy Prisa, S.E.
_____________________________________________
Student [ / / 2019 ]
Approved by:
Dr. Badikenita Sitepu, S.E., M.Si.
_____________________________________________
Thesis Advisor [ / / 2019 ]
Dr. Nila K. Hidayat, S.E., M.M.
_____________________________________________
Thesis Co-Advisor [ / / 2019 ]
Dr. Nila K. Hidayat, S.E., M.M.
_____________________________________________ [ / / 2019 ]
ABSTRACT
IMPACT OF INTELLECTUAL CAPITAL ON FIRM VALUE OF THE COMPANIES LISTED IN LQ45 INDEX 2010-2017 THROUGH FINANCIAL
PERFORMANCE AS INTERVENING VARIABLE By
Joseph Ardy Prisa, S.E.
Dr. Badikenita Sitepu, S.E., M.Si., Advisor Dr. Nila K. Hidayat, S.E., M.M., Co-Advisor
SWISS GERMAN UNIVERSITY
The Purpose of this study is to obtain empirical evidence about impact of Intellectual Capital (IC) on Firm Value (FV) of the companies listed in LQ45 Index during the years 2010-2017 directly and indirectly. The indirect method used Financial Performance (FP) as Intervening Variable. The Firm Value as the dependent variable was measured using a Price to Book Value (PBV), the Financial Performance was measured by proxy Return on Equity (ROE). While Intellectual Capital is measured using Value Added Intellectual Capital Efficiency (VAICTM ). The object of the research is the companies listed in LQ45 Index in eight consecutive years and also according to defined criteria. The number of samples that meet the criteria of 17 companies with the financial reporting period from 2010 to 2017. Based on the analysis and hypothesis testing, this study showed the following results: Intellectual capital has a significant impact on financial performance; Intellectual capital has an significant impact on firm value through Financial Performance as Intervening variable; Agriculture and Basic Industry companies has most VAIC awareness.
Keywords: Intellectual Capital, Financial Performance, Firm Value, VAICTM, PBV ROE.
© Copyright 2019 by Joseph Ardy Prisa
All rights reserved
DEDICATION
I dedicate this thesis works for the future and benefits of my beloved country Indonesia.
ACKNOWLEDGEMENTS
All the praises and thanks be to Jesus Christ, the Almighty and the most Merciful.
First of all, I would like to thank my advisor Dr. Badikenita Sitepu, S.E., M.Si. for her continuous support, invaluable guidance and encouragement. She has always been a great source of motivation for me throughout this thesis work at SGU University. She did not only help me to improve my thesis with great patience but also mentored me to always set high standards of excellence with simple mindset, which will help me throughout my future career. My sincere gratitude also goes to Dr. Nila K. Hidayat, S.E., M.M., the Dean of the Faculty of Business and Communication and also my thesis co-advisor, who has been quite helpful and consistent in providing comments on my work. I would also like to thank Mr. Parhimpunan Simatupang, S.E., M.B.A.
the Director of MBA program who give me the opportunity to join the program and to complete the thesis work.
My mentors Dr. Antonius TP. Siahaan, S.E., Akt., M.M., C.A., Prof. Dr. Martin Boesch, Dr. Ir. Yosman Bustaman, M.Buss., Dr. Edi Sofyan, B.Eng, M.Eng (Aero), and Dr. Ita Mariza; all of them deserve sincere thanks for their encouragement and motivation.
The completion of my MBA would not have been possible without continuous support and encouragement from my beloved family. I would like to thank my family for the tremendous help and patience throughout the ups and downs of my life; I am proud to be the member of the family.
Last but not least, I would like to thank my MBA Batch 30 colleague for the wonderful experiences and fun moments during our study.
TABLE OF CONTENTS
Page
Statement by Author...2
Abstract...3
Dedication...5
Acknowledgements...6
Table of Contents...7
List of Figures...13
List of Tables...14
Chapter 1 Introduction...15
1.1 Background...15
1.2 Research Problems...20
1.3 Research Objectives...23
1.4 Significance of Study...23
1.5 Research Questions...24
Chapter 2 Literature Review...25
2.1 Introduction... ..25
2.1.1 Economics Theory...27
2.1.2 Stakeholder Theory...28
2.1.3 Intervening Variable...29
2.1.4 LQ45 Index...30
2.2 Variable Definition...34
2.2.1 Intangible Assets...34
2.2.2 Company Performance...35
2.2.3 Market Value...36
2.3 Variable Measurement...38
2.3.1 Intellectual Capital...38
2.3.1a Human Capital...39
2.3.1b Structural Capital...39
2.3.1c Relational Capital...39
2.3.1d Value Added Intellectual Capital (VAICTM)...39
2.3.2 Financial Performance...40
2.3.2a Return on Equity (ROE)...41
2.3.3 Firm Value...42
2.3.3a Price to Book Value (PBV)...42
2.4 Hypotheses Development...44
2.4.1 Intellectual Capital and Firm Value...44
2.4.2 Intellectual Capital and Firm Value through Financial Performance as Intervening Variable...46
Chapter 3 Research Methodology...49
3.1 Scope of Study...49
3.2 Population and Sampling Method...49
3.2.1 Population...49
3.2.2 Sample Selection...49
3.3 Research Framework...52
3.4 Research Model...53
3.4.1 Research Question...53
3.4.2 Research Hypotheses...54
3.5 Data Source and Collection...54
3.6 Variable Operationalization...55
3.6.1 Independent Variable...55
3.6.1c Structural Capital Coefficient...56
3.6.1d Relational Capital Coefficient...57
3.6.1e Value Added Intellectual Capital...57
3.6.2 Intervening Variable...58
3.6.2a Return on Equity...58
3.6.3 Dependent Variable...58
3.6.3a Price to Book Value...58
3.7 Data Processing Technique...58
3.8 Validity Test and Reliability Test...59
3.8.1 Descriptive Statistic...59
3.8.2 Classic Assumption Test...59
3.8.2a Normality Test...59
3.8.2b Autocorrelation Test...60
3.8.2c Multicollinearity Test...60
3.8.2d Heteroskedasticity Test...61
3.8.3 Adjusted R Square...61
3.8.4 Statistical F Test...61
3.8.5 Statistical t Test...62
3.9 Hypothesis Testing...62
3.9.1 Regression Linear...62
3.9.2 Path Analysis...63
3.9.3 Sectoral Analysis...63
Chapter 4 Result and Discussions...64
4.1 Overview of Research...64
4.2 Data Quality Test...64
4.2.1 Descriptive Statistic...64
4.3 Classic Assumption Test...65
4.3.1 Normality Test...65
4.3.2 Autocorrelation Test...67
4.3.3 Multicollinearity Test...67
4.3.4 Heteroskedasticity Test...68
4.4 Data Result...68
4.4.1 Adjusted R Square...68
4.4.2 Statistical F Test...69
4.4.3 Statistical t Test...71
4.5 Hypotheses and Model Analysis...72
4.5.1 Impact of IC on FV...72
4.5.2 Impact of IC on FV through FP...72
4.6 Path Analysis...74
4.7 Sectoral Analysis...75
4.7.1 Financial Sector...76
4.7.1a F Test...76
4.7.1b Cost Allocation...77
4.7.1c Company Strategy...77
4.7.1d Community Perspective...78
4.7.2 Consumer Goods Sector...78
4.7.2a F Test...78
4.7.2b Cost Allocation...79
4.7.2c Company Strategy...79
4.7.2d Community Perspective...80
4.7.3 Infrastructure Sector...81
4.7.3a F Test...81
4.7.3b Cost Allocation...82
4.7.3c Company Strategy...82
4.7.3d Community Perspective...83
4.7.4b Cost Allocation...84
4.7.4c Company Strategy...84
4.7.4d Community Perspective...85
4.7.5 Mining Sector...85
4.7.5a F Test...85
4.7.5b Cost Allocation...86
4.7.5c Company Strategy...86
4.7.5d Community Perspective...86
4.7.6 Agriculture Sector...87
4.7.6a F Test...87
4.7.6b Cost Allocation...87
4.7.6c Company Strategy...88
4.7.6d Community Perspective...88
4.7.7 Trade Sector...88
4.7.7a F Test...88
4.7.7b Cost Allocation...89
4.7.7c Company Strategy...89
4.7.7d Community Perspective...89
4.7.8 Miscellaneous Sector...90
4.7.8a F Test...90
4.7.8b Cost Allocation...90
4.7.8c Company Strategy...91
4.7.8d Community Perspective...91
4.7.9 Table of Summary...92
4.8 Discussions...93
Chapter 5 Research Methodology...95
5.1 Conclussions ...95
5.2 Thesis Limitation...95
5.3 Recommendation...96
Appendix...97
References...103
