Journal of Economics, Finance and Management Studies

ISSN (print): 2644-0490, ISSN (online): 2644-0504

Volume 5 Issue 05 May 2022
Article DOI: 10.47191/jefms/v5-i5-11, Impact Factor: 6.274
Page No. 1300-1308

Intellectual Capital and Firm Value: The Role of Financial

Performance as Intervening Variable
Jumratun Choirunnisyah1, Esy Nur Aisyah2
1,2
UIN Maulana Malik Ibrahim Malang, Indonesia

ABSTRACT: This study aims to determine the effect of intellectual capital on firm value with financial performance as an
intervening variable. This study is a quantitative study using related methods. The goal is for all commercial banks in Indonesia
to be listed on the Indonesia Stock Exchange (IDX). The sampling used the purposive sampling method and resulted in 42
commercial banks in Indonesia. The data in this study is secondary data in the form of annual financial reports from 2017 to
2021. Path analysis is used with SPSS version 23 software for data analysis. The results showed that Intellectual Capital (VAICTM)
had a significant effect on Financial Performance (ROE), Intellectual Capital (VAIC TM) had no significant effect on Firm Value
(PER), Financial Performance (ROE) had a significant effect on Firm Value (PER), Intellectual capital ( VAICTM) has an indirect
impact on firm value (PER) through financial performance (ROE) as an intervening variable.

KEYWORDS: Intellectual Capital, Firm Value, Financial Performance

1. INTRODUCTION
Indonesia is currently preparing itself to take massive changes towards the golden generation of 2045, one aspect of which is the
economy. In 2045, the government strives that Indonesia will become the center of the economy because, at this time, there is a
more productive age than on-productive age. So, in this case, regeneration is needed that is intellectually superior, skilled, and
highly competitive to face the dynamics of the global economy.
As a center for financial institutions, banking is a place for individuals, private business entities, government
institutions, and the like to store funds with various services offered. Banks serve the financing and payment system to expedite
the economic mechanism because of the functions and roles that banks have, namely as a transmission function, storing and
distributing funds, distributing financial risks, and an instrument in stabilizing the economy (Simatupang, 2019).
In connection with the skyrocketing economic development and all-digitalization, the company is currently paying more
attention to developing and understanding intellectual capital. Intellectual capital, abbreviated as IC, is a method and approach
used in measuring and assessing the knowledge assets owned by the company. The company's main goal is to maximize the
company's value; the value will be reflected in its share price. If there is a process of increasing stock prices in a company and it
is different from the asset book, it shows a hidden value (Hadiwijaya, 2013). Companies that want a lot of consumers and
generate profits, then the company will pay attention to their value in the eyes of society and continue to increase it. Firm value
is an investor's perception of the company's level of success which is often associated with stock prices and profitability
(Husnan, 2008).
According Kusumandari (2019), company performance is a progressive process that affects the company's value. This
performance is measured by a financial performance system that will determine the company's achievements, both profit, and
intelligence, in managing company assets. The instrument for measuring financial performance is the financial report. The
function of financial statements is as a reference and information data as a form of evaluation and changes made by the
company in the future. Companies aware of the importance of intellectual capital will make the company more superior and
competitive. Intellectuals can be measured by Human Capital, Structural Capital, and Capital Employed (Ulum, 2009). Human
capital is a resource seen from the human perspective by the company's employees. Companies with good resources will also
manage assets well (Ulum, 2007) .

Structural capital is a resource in the form of infrastructure such as infrastructure systems and the like to support the
performance of company employees to compete. Another important thing is the customer, apart from involving people in the

JEFMS, Volume 5 Issue 05 May 2022 [Link] Page 1300

Intellectual Capital and Firm Value: The Role of Financial Performance as Intervening Variable
business. And something that can help a business it can move forward is the customer. Customers are entities outside the
company, such as suppliers or customers; companies must create good relationships with customers because they are very loyal
to increase business profits (Ulum, 2007).
The influence of intellectual capital on financial performance shows that intellectual capital is a valuable asset for the
company and occupies an urgent position in adding value and helping to improve the financial performance of banking
companies in Indonesia (Yuskar & Novita, 2014). Financial performance has a positive effect on firm value, which indicates that
return remains a benchmark for investors to assess whether the company is still performing well or not. The existence of
complementary intellectual capital reports and good financial performance will help the company gain more trust in the market
due to good prospects.
About intellectual capital research, many previous studies have discussed it. Auliyah & Asyik (2016) examined
intellectual capital, and the results showed that intellectual capital had a positive effect on firm value and financial performance.
However, different results were presented by Septiana (2018)nin the results of his research that intellectual capital affects
financial performance (ROA) but not firm value (PBV). At the same time, financial performance affects firm value. And
intellectual capital (VAICTM) affects financial performance (ROA) and firm value (PBV) if on the intervening variable.
Based on several previous studies above, there are differences in the influence of intellectual capital on firm value and
financial performance. Based on these differences, the researcher hypothesizes that intellectual capital does not always have
implications for firm value and financial performance. This research represents several previous studies related to the influence
of intellectual capital on firm value and financial performance. The difference between this study and previous research is to
examine the direct effect of intellectual capital on firm value and the indirect impact of intellectual capital on firm value through
the financial performance of the banking sector listed on the Indonesia Stock Exchange from 2017 to 2021.
The reason for choosing the intervening variable in this study is to determine the indirect effect of financial
performance between the Intellectual Capital variable on firm value. In addition, the banking sector companies are the focus of
this research because the banking sector is classified as an intellectual-based sector that innovates in products and services.
Published financial reporting services and data (balance sheet, profit/loss), which can be accessed. In addition, the banking
industry has a broad scope, so a lot of capital is involved, including intellectual capital.
In this study, financial performance is used as an intermediary variable to determine the indirect relationship of
Intellectual Capital to firm value. Firm value as the dependent variable does not change direction with the intellectual capital it
has, but the effect or change in weight is achieved through financial performance as an intervening variable. The form of
difference between this research and previous research is the intervening variable proxied by Return on Equity (ROE). Therefore,
based on the description of the background, the researcher took the title "The Influence of Intellectual Capital on Firm Value
with Financial Performance as an Intervening Variable (Study of Banking Sector Companies listed on the Indonesia Stock
Exchange (IDX) 2017-2021 Period)".

2. LITERATUR RIVIEW
2.1 IntellectualjCapital
Intellectual Capital is an asset in the form of knowledge or intellectual capital owned by a company whose form is invisible or
intangible. (Maaloul, 2010) says IC is knowledge used by companies in business processes to create added value in the
company's progress. Meanwhile, Sawarjuwono (2003), said that IC is a machine that manages three main elements of an
organization which includes customer, structural and human capital. And the role of IC in the three main elements is as an added
value for the company to have advantages and be competitive. Based on the VAIC method, there are three constituent elements
or components, namely Employed Capital Value Added (VACA), Value Added Human Capital (VAHU), Structural Capital Added
Value (STVA)

2.2 Firm Value

Firm value is the market value of the company's debt and equity. Keown (2010) The concept used to represent the
company's value is the intrinsic concept, which is where this concept discusses the value of assets and the value of the company
in obtaining profits in the future. Some corporate institutions often use the ratio as a reference/basic assessment in determining
company values. And as for the value of the company, this research is to use the price-earnings ratio (PER) to measure the
company's value.

2.3 Financial Performance

Financial performance is related to financial ratios, which are company performance analysis instruments that
explain various relationships and financial indicators in past conditions and help describe the trend of these changing patterns

JEFMS, Volume 5 Issue 05 May 2022 [Link] Page 1301

Intellectual Capital and Firm Value: The Role of Financial Performance as Intervening Variable
and then show the risks and opportunities inherent in the company concerned (Aisyah, 2015). One of the financial ratios used is
the profitability ratio with ROE.

2.4 Hypotesis
2.4.1 The Influence of Intellectual Capital on Financial Performance
Financial performance is a form of financial development over time in a company. Intellectual Capital has a positive
influence or impact on the company. Because empowering the company's knowledge can provide creativity and innovation, and
every action is carried out with search and research efforts first. So that is what was expressed by (Auliyah & Asyik, 2016) in their
research that says that intellectual capital positively influences company empowerment.
Many research results show that intellectual capital positively affects a company's financial performance perusahaan
(Al-musali et al. 2014; Arslan & Zaman, 2015; Auliyah & Asyik, 2016). The measure of intellectual capital uses the VAIC
formulated by Pulic. The higher the VAICTM, the higher the company's financial performance. The higher this ratio, the better the
productivity of assets to generate net income. In contrast to the research of Auliyah & Asyik (2016) and Putri (2019) examines
the influence of intellectual capital on financial performance and firm value (a case study on a manufacturing company listed on
the Indonesian stock exchange in 2012-2017).
H1: Intellectual Capital has a significant effect on the company's financial performance.
2.4.2 The Influence of Intellectual Capital on Firm Value
The value of the company can be reflected in the price that investors pay for their shares in the market. Research
conducted (Putri, 2019) shows that intellectual capital has a positive effect on the market value of the company. If intellectual
capital increases, in the sense that it is managed properly, Septiana (2018) the market perception of firm value will increase.
Contrary to this research, it fails to show that intellectual capital has an effect on the market value of the firm.
Septiana's (2018) research shows that financial performance significantly affects firm value, indicating that the higher
the financial performance, the more likely the firm value will increase. Vice versa, the weaker the financial performance, the
company's value will decrease. Thus, return on assets (ROA) is one factor that affects firm value. Financial performance has a
significant positive effect on firm value.
H2: Intellectual Capital has a significant positive effect on firm value.
2.4.3 The Effect of Financial Performance on Company Value
Research conducted by Septiana (2018) proves that financial performance significantly affects firm value. So that the
higher the financial performance, the more likely the firm value will increase. And conversely, the lower the financial
performance, the company's value will also decrease. Therefore, return on assets is one of the factors that influence the
company's value. Based on the description above, the hypotheses proposed in this study are as follows:
H3 : Financial performance has a significant effect on firm value.
2.4.4 The Influence of Intellectual Capital on Firm Value With Financial Performance as an Intervening Variable
In resource-based theory, it is assumed that companies can compete if they can manage and use resources according to their
abilities. The company's resources are supported by good i-business intelligence; when resources are managed effectively and
efficiently, it can encourage increased business performance, which will be responded to positively by stakeholders, one of
which is an investor. So, the company's value can be reflected in the company's share price. The better the stakeholder
response, the better the value of the company.
H4: Intellectual Capital has a significant effect on firm value through financial performance as an intervening variable.

3. METHOD
The research method applies quantitative research with a correlational approach. Commercial banks listed on the IDX as the
research population then use a purposive sampling technique to draw samples. The sample in this study were 19 commercial
banks in Indonesia, namely Bank Rakyat Indonesia (Persero) Tbk, Bank Negara Indonesia (Persero) Tbk, Bank CIMB Niaga Tbk,
Bank Mega Tbk, Bank Danamon Tbk, Bank Tabungan Negara Tbk, Bank Mandiri (Persero). Tbk, Bank BJBR, Bank BJTM, Bank
Central Asia Tbk, National Pension Savings Bank Tbk, Bank Jtrust Tbk, Bank OCBC NISP Tbk, Bank Woori Saudara Tbk, Bank Pan
Indonesia Tbk, Bank Sinarmas Tbk, Maybank Tbk, Bank Jago Tbk, Bank QNB Tbk with 65 observations based on the 2017-2021
annual financial statements. The criteria for selecting the research sample align with Sugiyono (2011).

Table 1. Sampling Criteria

No Description Total
1 Commercial Banks in Indonesia 2017-2021 42

JEFMS, Volume 5 Issue 05 May 2022 [Link] Page 1302

Intellectual Capital and Firm Value: The Role of Financial Performance as Intervening Variable
2 Banks that do not meet the purposive sampling criteria (23)
Number of samples 19
Year of Observation 5
Total research data before Outlier 19 x 5 = 95
Number of data with Outlier (30)
Total research data after Outlier 65
Source: Processed Data, 2022

The dependent variable (Y) in this study is firm value; firm value is the market value of the company's debt and equity
(Keown, 2010). And to measure the value of the company in this research is to use the Price Earning Ratio (PER).

PER

Furthermore, the independent variable (X) in this study is intellectual capital; Sawarjuwono (2003) says IC is a machine
that manages three main elements of an organization: customer, structural, and human capital. Intellectual capital, as measured
by the VAICTM (Value Added Intellectual Capital) method, consists of three components, namely capital employed (VACE), Human
capital (VAHU), and Structural capital (SCVA). Combining these three components will form the final calculation with the symbol
VAICTM (Value Added Intellectual Capital) (Aisyah & Rosida, 2021).
1) The First Stage is Calculating Value Added/VA
VA = OUT - IN
2) Second Stage is Calculating Value Added of Capital Employed (VACA)
VACA is a VA indicator created by physical capital units. This figure shows each CE unit's contribution to the
organization's value creation.
VACA = VA/CE
3) The third stage is to calculate the Value Added Human Capital (VAHU)
AHU shows how much VA can be generated with funds spent on work; this ratio shows the contribution of each Rupee
invested in HU adds value to the organization.
VAHU = VA/HU
4) The Fourth Stage is Calculating Structural Value Added Capital (STVA)
This ratio measures the amount of SC needed to generate a dollar of VA and is part of the indicator of SC's success in
creating value.
STVA = SC/VA
5) The fifth stage is the Calculation of Value Added IQ (VAIC), VAIC is the sum of VACA, VAHU and STVA
VAIC = VACA + VAHU + STVA
Description:
VA : Value Added
OUT : Total Sales and Other Income
IN : Operational costs other than salary and employee benefits
CE : Equity, Net Income
HC : Labor load
SC : Difference between VA and HC
The intervening variable is a function of the independent variable, which ultimately explains its effect on the
independent variable (Nasution, 2008). The variable used in this research is financial performance. Financial performance is a
description of the financial condition of a company. Financial performance in this mini-research uses Return on Equity (ROE). ROE
measures the rate of return on shares owned by company shareholders (Aisyah & Pratikto, 2022).

ROE
The data in this study were analyzed using path analysis. Path analysis is a means to examine causal relationships
between variables to determine both direct and indirect effects between independent/exogenous variables and
dependent/endogenous variables (Sandjojo, 2011).
ROE= 1 VAIC +  1 ……………….....………….. (4)

JEFMS, Volume 5 Issue 05 May 2022 [Link] Page 1303

Intellectual Capital and Firm Value: The Role of Financial Performance as Intervening Variable
PER= 2 VAICTM + 3 ROE + 2 ……......... (5)
Description:
ROE = Return on Asset
VAICTM = Value Added Intellectual Capital
PER = Price to book valu)
1 = ROE path coefficient with VAICTM
2 = PER path coefficient with VAICTM
3 = ROE path coefficient with PER
 1 = Residual on financial performance
 2 = Residual on firm value

4. RESULTS AND DISCUSSION

4.1 RESULT
4.1.1 DESCRIPTIVE STATISTIC
Based on the results of descriptive statistics, The VAICTM variable has a minimum value of -1.74, a maximum value of
2.61, an average value (mean) of 0.5978, and a standard deviation of 1.0046. PER has a minimum value of 1.13, a maximum
value of 2.36, an average value (mean) of 0.9867, and a standard deviation of 0.5612. ROE has a minimum value of 1.00, a
maximum value of 2.04, an average value (mean) of 0.1119, and a standard deviation of 0.5483. The results of statistical tests
are presented in table 2 as follows:

Table 2. Descriptive Statistical Test

N Minimum Maximum Mean Std. Dev
TM
VAIC 65 -1,74 2,61 0,5978 1,0046
PER 65 1,13 2,36 0,9867 0,5612
ROE 65 1,00 2,04 0,1119 0,5483
Source: SPSS23 output, 2022

4.1.2 Normality Test

Residual normality can be known by looking at the one-sample Kolmogorov-Smirnov test table (Ghozali, 2016). Based
on the test data obtained, the results are as follows:

Table 3. Normality Test

Model Sig Description
VAICTM → ROE 0,200 Normal
VAICTM → ROE → PER 0,200 Normal
Source: SPSS23 output, 2022

Based on the analysis results above, it shows that the Asymp Sig (2-tailed) is 0.200 and 0.200, respectively. This value is
greater than 0.05. Then the results of the analysis show that the residuals are normally distributed. Therefore, based on the
normality test, the data used in this study is feasible to use.

4.1.3 Multicollinearity Test

Multicollinearity aims to test whether the regression model found a correlation between independent variables
(Ghozali, 2016). The results of the multicollinearity test from this study are presented in table 4 below:

Table 4. Multicollinearity Tests

Model Tolerance VIF Keterangan
VAICTM → ROE 1,000 1,000 Multicollinearity fulfilled
VAICTM → PER 0,937 1,067 Multicollinearity fulfilled
ROE → PER 0,937 1,067 Multicollinearity fulfilled
Source: SPSS23 output, 2022

JEFMS, Volume 5 Issue 05 May 2022 [Link] Page 1304

Intellectual Capital and Firm Value: The Role of Financial Performance as Intervening Variable
Based on the results of the multicollinearity test in table 4, the tolerance value of the VAIC TM variable to ROE is greater
than 10% or (1,000> 0.1), and the VIF value is less than ten or (1,000 < 10). Furthermore, the tolerance value of the VAIC TM
variable to PER and the ROE variable to PER is greater than 10% or (0.937>0.1), and the VIF value is less than 10% or (1.067<10).
So it can be concluded that there is no multicollinearity in the research regression model.

4.1.4 Autocorrelation Test

Autocorrelation determines whether the equation contains autocorrelation (Ghozali, 2016). This test was carried out
using Durbin-Watson.

Table 5. Autocorrelation Test

Model Durbin-Watson
VAICTM → ROE 2,079
VAICTM → ROE → PER 1,921
Source: SPSS23 output, 2022

Based on the analysis, results indicate that the value of Durbin-Watson VAICTM to ROE is 2.079. This value is between du
and 4-du (du < DW < 4-du or 1.6960 < 2.079 < 2.304). Furthermore, the value of Durbin Watson VAIC TM and ROE to PER is 1.921.
This value is between du and 4-du (du < DW < 4-du or 1.6960 < 1.921 < 2.304). Thus, the results of the analysis of the two
models show that there is no autocorrelation.

4.1.5 Hypotesis Test (F-test)

The result of the simultaneos test of this study are as follow:
Table 6. Simultaneous Test
Model Hubungan F Statistics Sig.
Model 1 Intellectual Capital → Financial performance 4,249 0,043
Intellectual Capital → Firm Value
Model 2 Kinerja Keuangan → Firm Value 6,013 0,004
Source: SPSS23 output, 2022

Based on the summary results listed in table 6 above, it shows that in model 1, namely the influence of intellectual
capital on financial performance, the F statistic is 4.249 with a significance of 0.043. The test results indicate that the significance
< alpha (5%). Therefore, it can be concluded that intellectual capital significantly influences financial performance.
Furthermore, in Model 2, namely the influence of intellectual capital and financial performance on firm value, F-
statistics is obtained at 6.013 with a significance of 0.043. The test results indicate that the significance < alpha (5%). Therefore,
intellectual capital and financial performance simultaneously significantly affect firm value.

4.1.6 Hypotesis Test (t-test)

The result of the partial test of this study are as follow:
Table 7 Partial Test
Eksogen Endogen Koef T Statistik Sig.
Intellectual Capital Financial performance 0,251 2,061 0,043
Intellectual Capital Firm Value 0,151 1,255 0,214
Financial performance Firm Value 0,338 2,814 0,007
Source: SPSS23 output, 2022

In Hypothesis 1, Intellectual Capital on Financial Performance produces a statistical T value of 2.061 with 0.043. The test
results indicate that the significance < alpha (5%). That Intellectual Capital has a significant direct effect on Financial
Performance. Therefore, hypothesis 1 is accepted.
Hypothesis 2, Intellectual Capital Against Firm Value, produces a statistical T value of 1.255 with 0.214. The test results
indicate that the significance> alpha (5%). That Intellectual Capital has no significant direct effect on Firm Value. Therefore,
hypothesis 2 is rejected.

JEFMS, Volume 5 Issue 05 May 2022 [Link] Page 1305

Intellectual Capital and Firm Value: The Role of Financial Performance as Intervening Variable
Hypothesis 3, Financial Performance on Firm Value, produces a statistical T value of 2.814 with a significance of 0.007.
The test results indicate that the significance < alpha (5%). That financial performance has a significant direct effect on firm
value. Therefore, hypothesis 3 is accepted.
Furthermore, the indirect influence of Intellectual Capital on Firm Value is through financial performance. It is known
that intellectual capital has a significant effect on financial performance. Financial performance significantly affects firm value,
but intellectual capital has no significant impact. Because both paths are declared significant, it can be stated that there is a
significant indirect effect on firm value through financial performance. Thus, financial performance can mediate the influence of
intellectual capital on firm value.

4.1.7 Determination Test

The result of the determination test of this study are as follow:
Table 8. Determination Test
Model R R Square Adjusted R Square
Model 1 0,354 0,126 0,097
Model 2 0,446 0,199 0,159
Sumber: SPSS 23 (Data Diolah), 2022

The coefficient of determination test aims to see how well a model can explain the dependent variable. The
coefficient of determination is the R-Squared value (Ghozali, 2016). The R-Squared value in the table above shows that the
Model 1 VAICTM on ROE is 0.126 or 12.6%. That intellectual capital influences financial performance, while the remaining 87.4%
is explained by other factors not included in this study. Furthermore, the value of R-Squared Model 2 VAICTM and ROE to PER is
0.159 or 15.9%. That firm value is influenced by intellectual capital and financial performance, while the remaining 84.1% is
explained by other factors not included in this study.

4.1.8 Path Analysis

This path analysis uses regression analysis to estimate the causality relationship between variables that have been
previously determined based on the theory. The results of the path analysis show the direct and indirect effects of intellectual
capital on firm value as follows:

e1 =0,968

P2 0,251 ROE (Z) P3 0,338

VAICTM (X) PER (Y) e2 =0,915

P1 0,151

Figure 1. Path Diagram

The following is the interpretation of Figure 1 of the path diagram:

 The direct influence of intellectual capital on firm value is 0.251.
 Meanwhile, the direct influence of financial performance on firm value is 0.338.
 The magnitude of the indirect effect of intellectual capital on firm value with financial performance as an
intervening variable is calculated by P2 X P3 = -0.251 x 0.338 = 0.0848.
 While the total effect = 0.151 + 0.0848 = 0.2358.

4.2 DISCUSSION
4.2.1 The Effect of Intellectual Capital on Financial Performance
Based on the results of the study indicate that Intellectual Capital has a significant effect on Financial Performance. The
significance value is smaller than the specified significance level, meaning that Intellectual Capital has a significant impact on
financial performance. The standardized coefficient beta indicates that Intellectual Capital has a positive and significant effect on
Financial Performance, meaning that H1 is accepted.
The results of this study support the results of research conducted by oleh Al-musali et al. (2014); Arslan & Zaman
(2015); Auliyah & Asyik (2016), which state that Intellectual Capital has a positive effect on the company's financial performance.
The measure of intellectual capitaluses the VAIC formulated by Pulic. The higher the VAIC TM, the higher the company's financial
performance. The higher this ratio, the better the productivity of assets to generate net income.
JEFMS, Volume 5 Issue 05 May 2022 [Link] Page 1306
Intellectual Capital and Firm Value: The Role of Financial Performance as Intervening Variable
4.2.2 The Effect of Intellectual Capital on Firm Value
Based on the results of the study indicate that Intellectual Capital has no significant effect on firm value. The
significance value is greater than the specified significance level, meaning that H2 is rejected. The results of this study are
different from the results of research conducted by Mardhiana (2020); Nafiroh & Nahumury (2017); Putri (2019), which states
that Intellectual Capital affects Company Value. The higher the intellectual capital owned by the company can affect its value. In
this case, investors will give a higher assessment of companies with higher intellectual resources than companies with low
intellectual resources.
However, this study is by research conducted by Septiana (2018), which states that Intellectual Capital has no
significant effect on firm value. And that investors have not given a high assessment of companies with higher intellectual capital
because the company's operational activities seem to be still dominated by the use of physical assets to increase the company's
value.
4.2.3 The Effect of Financial Performance on Firm Value
Based on the results of the study indicate that financial performance has a significant effect on firm value. The
significance value shows that it is smaller than the specified significance level, meaning that Financial Performance has a
significant impact on Firm Value. The standardized coefficient beta indicates that financial performance has a positive and
significant effect on firm value, meaning that H1 is accepted.
The results of this study are supported by the results of research conducted by Septiana (2018), proving that financial
performance has a significant effect on firm value. And that the higher the financial performance, the more likely the firm value
will increase. And conversely, the lower the financial performance, the company's value will also decrease. Therefore, return on
assets is one of the factors that influence the company's value.
4.2.4 The Effect of Intellectual Capital on Firm Value through Financial Performance
Based on the first significant test results, intellectual capital had a significant effect on financial performance. Then the
results of the second test of financial performance significantly affect firm value. This study proved the researcher's assumption
that financial performance could mediate the relationship between intellectual capital and firm value. And that good intellectual
capital governance will improve the company's financial performance. The company's development attracted many investors to
invest their shares in the company. It has a positive effect on firm value. Therefore the company will also increase.
The results of this study are in line with research conducted by Nafiroh & Nahumury (2017) and Septiana (2018), which
also states that companies that can manage their intellectual resources efficiently will create value-added and competitive
advantages which will lead to an increase in company profits. Profitability growth means that the company's prospects in the
future are considered to be getting better, representing the better the value of the company in the eyes of investors, which is an
attraction for investors.

5. CONCLUSION
Based on the results of the tests and discussions conducted, conclusions can be drawn, namely: (1) Intellectual capital has a
significant effect on financial performance; this shows that intellectual capital plays an important role in the formation of added
value and contributes to improving the financial performance of commercial banks in Indonesia. (2) Intellectual capital has no
significant effect on firm value; in this case, commercial banks have not been able to manage and develop their intellectual
property optimally. (3) Financial performance has a significant effect on firm value; this indicates that the better the growth of
the bank's financial performance means that the bank's prospects in the future are considered better in the eyes of investors. (4)
Intellectual capital has an indirect effect on firm value through financial performance as an intervening variable; with the ability
of financial performance to mediate intellectual capital with firm value, it can be concluded that well-managed intellectual
capital will result in good company performance so that it will attract investors to invest in the bank. Thus the market value of
the company will increase.
This study has limitations in the independent variables used. Further research on intellectual capital in commercial
banks in Indonesia is expected to increase the research period so that the influence of intellectual capital on firm value is more
consistent and reflects the actual conditions. In addition, the intervening variables used to proxy financial performance can use
ROA, ROI, NPM, and BOPO. Nevertheless, the results of this study can be considered useful for commercial banks in Indonesia,
with more efforts that can be made to improve the efficiency of the Intellectual capital of banks, potentially increasing the
profitability and firm value of these banks. Therefore, the findings of this study require further research in this area.

REFERENCES
1) Aisyah, E., & Pratikto, H. (2022). Intellectual Capital And Financial Performance In Sharia Commercial Banks In
Indonesia. International Journal Of Social Science Research And Review, 5(4), 12–19.
Https://[Link]/10.47814/Ijssrr.V5i4.225.
2) Aisyah, E. & Rosida, S. (2021). Analisis Pengaruh Intellectual Capital Dan Working Capital Terhadap Profitabilitas Bank
Umum Syariah Bumn. Jrak, 12 (2), 96–110.
3) Aisyah, E. N. (2015). Handbook Manajemen Keuangan I. Malang: Universitas Negeri Malang.
4) Al-Musali, M. A. K., Nor, K., & Ku, I. (2014). Intellectual Capital And Its Effect On Financial Performance Of Banks :

JEFMS, Volume 5 Issue 05 May 2022 [Link] Page 1307

Intellectual Capital and Firm Value: The Role of Financial Performance as Intervening Variable
Evidence From Saudi Arabia. Procedia - Social And Behavioral Sciences, 164(August), 201–207.
Https://[Link]/10.1016/[Link].2014.11.068
5) Arslan, M., & Zaman, R. (2015). Intellectual Capital And Its Impact On Financial Performance : A Study Of Oil And Gas
Sector Of Pakistan. 43, 125–140. Https://[Link]/10.18052/[Link]/Ilshs.43.125
6) Auliyah, H., & Asyik, N. F. (2016). Pengaruh Intellectual Capital Terhadap Nilai Perusahaan. Jurnal Ilmu Dan Riset
Akuntansi, 5(September).
7) Ghozali. (2016). Aplikasi Analisis Multivariete Dengan Program Ibm Spss. Universitas Diponegoro.
8) Hadiwijaya, R. (2013). Pengaruh Intellectual Capital Terhadap Nilai Perusahaan Dengan Kinerja Keuangan Sebagai
Variabel Intervening. Diponegoro Journal Of Accounting, 2 (4).
9) Husnan, S. (2008). Manajemen Keuangan: Teori Dan Penerapan Buku 1 Edisi Iv. Yogyakarta: Bpfe.
10) Keown, A. J. Et. Al. (2010). Manajemen Keuangan : Prinsip Dan Penerapan. Jilid 2, Edisi 10, Indeks, Jakarta.
11) Kusumandari, Y. (2019). Pengaruh Intellectual Capital Terhadap Nilai Perusahaan. Jurnal Ilmu Dan Riset Akuntansi, 8,
No.4.
12) Maaloul, D. Z. And A. (2010). Analysing Value Added As An Analysing An Indicator Of Ic Indicator Of Intellectual Capital
And Its Consequences On Company. Journal Of Intellectual Capital Vol., 11(January).
Https://[Link]/10.1108/14691931011013325
13) Mardhiana, M. D. (2020). The Effect Of Intellectual Capital On Price To Book Value With Good Corporate Governance As
A Moderating Variable Made Dwi Mardhiana. Journal Of Accounting, Finance And Auditing Studies, 6, 131–145.
Https://[Link]/10.32602/Jafas.2020.032
14) Nafiroh, S., & Nahumury, J. (2017). The Influence Of Intellectual Capital On Company Value With Financial Performance
As An Intervening Variable In Financing Institutions In Indonesia. The Indonesian Accounting Review, 6(2), 159.
Https://[Link]/10.14414/Tiar.V6i2.604
15) Nasution, M. E. Dan H. U. (2008). Proses Penelitian Kuantitatif. Lembaga Penerbit Feui.
16) Putri, S. D. (2019). Pengaruh Intellectual Capital Terhadap Kinerja Keuangan Dan Nilai Perusahaan ( Studi Pada
Perusahaan Sektor Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Periode 2012-2017 ). Jurnal Administrasi Bisnis
(Jab), 66(1), 28–36.
17) Sawarjuwono, T. (2003). Intellectual Capital : Perlakuan , Pengukuran Dan Pelaporan. Jurnal Akuntansi & Keuangan, 5,
35–57.
18) Septiana, G. (2018). Analisis Pengaruh Intellectual Capital Terhadap Nilai Perusahaan Dengan Kinerja Keuangan Sebagai
Variabel Intervening Pada Perusahaan Perbankan Yang Terdaftar Di Bursa Efek Indonesia Periode 2010-2015. Jurnal
Pundi, 02(03), 227–240.
19) Simatupang, B. (2019). Peranan Perbankan Dalam Meningkatkan Perekonomian Indonesia. Jram: Jurnal Riset Akuntansi
Multiparadigma, 6 (2).
20) Sugiyono. (2011). Metode Penelitian Kuantitatif, Kualitatif, Dan R&D. Alfabeta.
21) Ulum, I. (2007). Pengaruh Intellectual Capital Terhadap Kinerja Keuangan Perusahaan Perbankan Di Indonesia.
Diponegoro.
22) Ulum, I. (2009). Intellectual Capital: Konsep Dan Kajian Empiris. (G. Ilmu (Ed.)).
23) Yoni, K., Dharma, M., Wahyuni, M. A., & Julianto, I. P. (2017). Pengaruh Intellectual Capital Terhadap Nilai Perusahaan
Dengan Kinerja Keuangan Sebagai Variabel Intervening ( Studi Perusahaan Manufaktur Pada Bursa Efek Indonesia
Periode 2013-2016 ). E-Jurnal S1 Ak Universitas Pendidikan Ganesha Jurusan Akuntansi Program S1, 8(1).
24) Yuskar, Dr.& Dhia Novita, S. (2014). Analisis Pengaruh Intellectual Capital Terhadap Nilai Perusahaan Dengan Kinerja
Keuangan Sebagai Variabel Intervening Pada Perusahaan Perbankan Di Indonesia Oleh : Abstract. Jurnal Manajemen
Dan Bisnis Sriwijaya, 12.

There is an Open Access article, distributed under the term of the Creative Commons
Attribution – Non Commercial 4.0 International (CC BY-NC 4.0)
([Link] which permits remixing, adapting and
building upon the work for non-commercial use, provided the original work is properly cited.

JEFMS, Volume 5 Issue 05 May 2022 [Link] Page 1308