Contribution Of Intellectual Capital In The Relationship Between Good Corporate Governance And Financial Performance

Abstract

His research aims to analyze and find empirical evidence on the mediating influence of intellectual capital (IC) on the influence of good corporate governance (GCG) on business performance. This study uses a sample of banking companies listed on the Indonesia Stock Exchange (BEI) in 2019-2021, with a maximum of 105 observation units were selected using the census method. The analysis technique used was path analysis with the Smart PLS 2.0 program. GCG is measured by Bank Indonesia Composite Value Rating, IC is measured by Value Added Intelligence Multiplier (VAIC^TM) and company performance is measured by Return on Equity (ROA). This study reveals that IC plays a mediating role by indirectly facilitating the influence of GCG on firm performance. These results demonstrate that IC has an indirect influence on business performance through business management and supervision performed by competent human resources in the GCG system so that they can perform their functions their capabilities and roles. The results of this study support the resource-based view and the knowledge-based view, according to which IC is a knowledge-based business resource capable of providing competitive advantage. The results of this study also demonstrate that there is a need for another GCG assessment for the banking industry in addition to the self-assessed composite rating, because this rating cannot be described in detail due to the existence of a wide range of values ​​and therefore There is an element of bias.