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Intellectual Capital Performance: A Comparative Study between Financial and Non-Financial Industry of Indonesian Biggest Companies

Author

Listed:
  • Ihyaul Ulum

    (Department of Accounting, University of Muhammadiyah Malang, Jl. Raya Tlogomas 246, Malang, Indonesia,)

  • Rizqiyah

    (Department of Accounting, University of Muhammadiyah Malang, Jl. Raya Tlogomas 246, Malang, Indonesia,)

  • Ahmad Waluya Jati

    (Department of Accounting, University of Muhammadiyah Malang, Jl. Raya Tlogomas 246, Malang, Indonesia.)

Abstract

The aim of this study is to analyze the intellectual capital performance (ICP) of financial and non-financial industry of Indonesian biggest companies. ICP was measured with modified value added intellectual coefficient (MVAIC) constucted by Ulum et al. (2014a) which is based on Pulic's model (Pulic, 1998). MVAIC is a comprehensive tool to measure the performance of IC. Data were taken from 50 biggest market capitalizations listed on the Indonesia Stock Exchange for the period of 2007-2014. The result indicates that the ICP of companies in the non-financial industry is higher than the ICP of companies in financial industry. This result disputes that financial industry is one of IC intensive sector as identified by Firer and Williams (2003)

Suggested Citation

  • Ihyaul Ulum & Rizqiyah & Ahmad Waluya Jati, 2016. "Intellectual Capital Performance: A Comparative Study between Financial and Non-Financial Industry of Indonesian Biggest Companies," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 6(4), pages 1436-1439.
    • Handle: RePEc:eco:journ1:2016-04-21
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    References listed on IDEAS

    as
    1. Meles, Antonio & Porzio, Claudio & Sampagnaro, Gabriele & Verdoliva, Vincenzo, 2016. "The impact of the intellectual capital efficiency on commercial banks performance: Evidence from the US," Journal of Multinational Financial Management, Elsevier, vol. 36(C), pages 64-74.
    2. Ante Pulic & Marko Kolakovic, 2003. "Value creation efficiency in the new economy," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 5(1), pages 111-128.
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    Cited by:

    1. Quan Tran & Anh‐Tuan Doan & Thao Tran, 2022. "What are the drivers of SMEs' financial performance? The interaction of intellectual capital and ownership," Australian Economic Papers, Wiley Blackwell, vol. 61(4), pages 751-777, December.
    2. MUSTAFA, Murtala Oladimeji Abioye & STELLA, Uwazuluonye Audu, 2023. "The Nexus between Human Capital Investment and Firm Growth of Selected Non-Financial Firms in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(8), pages 467-481, August.
    3. Anita Yesi & Didik Susetyo & Rela Sari, 2022. "The Effect of Intellectual Capital on the Company Value: The Case of Banking Companies in Indonesia," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 124-133, June.
    4. Mehmet Asutay & Ubaidillah, 2024. "Examining the Impact of Intellectual Capital Performance on Financial Performance in Islamic Banks," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 1231-1263, March.
    5. Abdu Mohammed Assfaw & Dhiraj Sharma, 2024. "Does corporate governance spur bank intellectual capital in an emerging economy? A system GMM analysis from Ethiopia," Future Business Journal, Springer, vol. 10(1), pages 1-28, December.
    6. Ahmed Jinjiri Bala & Aminu Hassan & Muhammad Liman Muhammad, 2024. "Do board characteristics matter in the relationship between intellectual capital efficiency and firm value? Evidence from the Nigerian oil and gas downstream sector," Future Business Journal, Springer, vol. 10(1), pages 1-24, December.
    7. Samuel Godadaw Ayinaddis & Habtamu Getachew Tegegne & Nitsuh Alemayehu Belay, 2024. "Does intellectual capital efficiency measured by modified value-added intellectual coefficient affect the financial performance of insurance companies in Ethiopia?," PLOS ONE, Public Library of Science, vol. 19(1), pages 1-15, January.
    8. Ahmed Jinjiri Bala & Aminu Hassan & Kabiru Isa Dandago & Attahir Babaji Abubakar & Zaharaddeen Salisu Maigoshi, 2021. "On the relationship between intellectual capital efficiency and firm value: evidence from the Nigerian oil and gas downstream sector," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 18(3), pages 222-251.
    9. Emil Exenberger & Michaela Kav?áková, 2020. "Evaluation of financial health of companies through data envelopment analysis: Selection of variables for the DEA model in R," Proceedings of Economics and Finance Conferences 10913067, International Institute of Social and Economic Sciences.

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    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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