The Role Of Intellectual Capital And Profitability In The Relationship Between Good Corporate Governance And Firm Value

  • Indri Kartika et al.

Abstract

This study aims to examine the effect of Good Corporate Governance on firm value with profitability and intellectual capital as intervening. Firm value reflects investor confidence regarding the company’s current position and optimism for the company’s future growth. Good Corporate Governance, Profitability, and Intellectual Capital are predicted to be factors which affect the firm value. The research data in the form of secondary data obtained from annual reports and financial reports published by the IDX and models similar to Hatane (2019) and Gwenda (2013) are used to examine the effect of Good Corporate Governance in companies. It was found that Good Corporate Governance has an effect on profitability, intellectual capital, and firm value, and profitability has an effect on firm value, but intellectual capital has not been able to increase firm value. This research contributes to the understanding of the concept of Good Corporate Governance with a scoring system and the relationship between Profitability, Intellectual Capital, Firm Value and Corporate Governance. This finding provides empirical support for the previous theory that effective Corporate Governance plays an important role in increasing Profitability, Intellectual Capital and Firm Value.

Published
2020-06-04