Improving Firm Value through Intellectual Capital, Good Corporate Governance and Financial Performance

Maya Indriastuti; Indri Kartika

doi:10.23887/jia.v6i1.30993

Authors

Maya Indriastuti Universitas Islam Sultan Agung
Indri Kartika

DOI:

https://doi.org/10.23887/jia.v6i1.30993

Keywords:

financial performance, firm value, good corporate governance, intellectual capital, Jakarta Islamic Index

Abstract

This study analyzed and tested empirically the firm value improvement through intellectual capital, good corporate governance, and financial performance. The samples of this study comprised 90 companies that analyzed by using the Structural Equation Model based on Partial Least Square with WrapPLS software. The results indicated that intellectual capital, good corporate governance, and financial performance were able to improve the firm value. The financial performance also was able to mediate the effect of intellectual capital and good corporate governance on firm value. The findings may become a consideration for regulators, especially the Financial Services Authority in making a a complete and strong regulation regarding the implementation of good corporate governance; as well as for investors to invest in companies listed on the Jakarta Islamic Index.

Author Biography

Maya Indriastuti, Universitas Islam Sultan Agung

a lecturer at Department of Accounting, Faculty of Economics, Universitas Islam Sultan Agung

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