THE VALUE RELEVANCE OF INTELLECTUAL CAPITAL OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN INDONESIA
(1) Noorina Hartati (2) Rini Dwiyani Hadiwidjaja
Universitas Terbuka, Universitas Terbuka
Abstract
This study aims to examine whether Intellectual Capital (IC) which includes VACA (CE), VAHU (HC), and STVA(SC) has a positive effect on company, with the leverage and total assets as control variables. The results of multiple linear regression tests (p-value) shows that the variables VACA (CE), VAHU (HC), STVA (SC) and Intellectual Capital (VAICTM) have a positive effect on SMEs financial performance. Therefore, the research further strengthens previous studies that Intellectual Capital and its components, which include Employed Capital, Human Capital and Structural Capital have an effect on SMEs financial performance. VAICTM is the best indicator to measure IC (Intellectual Capital). So to improve the financial performance of SMEs companies, it is necessary to pay attention to their employees (HC), capital structure (CE), and organizational structure in the company (SC).
Keywords: Intellectual Capital, Financial Performance, SMEs
Topic: Organizational and accounting system change