Analysis Of Intellectual Capital With The M-Vaic Method Of Stock Prices Through Profitability In Companies In The Idxtechno Index On The Indonesia Stock Exchange
Analysis of Intellectual Capital with the M-Vaic Method of Stock Prices through Profitability in Companies in the Idxtechno Index on the Indonesia Stock Exchange
Introduction
In the world of investment, one of the most crucial factors that investors consider is the company's measurable performance of its share price. Intellectual capital analysis is an approach that can be used to understand the underlying effect of various factors on a company's stock prices. This study aims to explore the effect of intellectual capital measured by the Modified Value Added Intellectual Coefficient (M-VAIC) method on the stock prices of companies listed on the IDXTECHNO index on the Indonesia Stock Exchange, and its role through profitability.
Background
The concept of intellectual capital has gained significant attention in recent years, as it is recognized as a key driver of a company's success. Intellectual capital refers to the knowledge, skills, and expertise that a company possesses, which can be used to create value for its shareholders. The M-VAIC method is a widely used approach to measure intellectual capital, as it takes into account various aspects of a company's intellectual capital, including human capital, structural capital, and relational capital.
Methodology
This study was conducted using a quantitative approach, with a descriptive verification method. The data used in this study were numerical data taken from 42 companies registered in the IDXTECHNO index in the 2017-2022 period. Of the total population, as many as eight companies were selected as samples based on criteria set by researchers. All data collected were then analyzed using the Partial Least Square (PLS) technique, which involves Structural Equation Modeling (SEM) analysis through SmartPLS software.
Results
The results of the analysis show that intellectual capital has a positive and significant influence on stock prices and profitability. This means that the higher the level of intellectual capital management in a company, the greater the impact on the performance of their shares. However, it is interesting to note that profitability does not have a significant effect on stock prices. This indicates that investors may pay more attention to other factors in determining the value of a company's shares, rather than just looking at the profitability produced.
Furthermore, this study found that profitability could not function as a mediator in the influence of intellectual capital on stock prices. That is, although companies have good intellectual capital, profitability is not a strong link to increase stock prices. This discovery implies that companies need to focus not only on increasing profitability, but also on intellectual capital management to increase the value of their shares in the market.
Discussion
The findings of this study have significant implications for investors and company managers. Intellectual capital plays an important role in determining the value of a company in the stock market. Investors and company managers need to consider strategies to increase their intellectual capital capacity, which will have a positive impact on stock prices. The success of the company in managing and utilizing intellectual capital will not only contribute to profitability but can also increase investor confidence, which ultimately has positive implications for the value of shares on the Indonesia Stock Exchange.
Conclusion
In conclusion, this study provides in-depth insight into the importance of intellectual capital and complex relations between the factors that affect stock prices in the context of the Indonesian market. It also highlights the need for a more holistic approach in the company's performance appraisal, outside of only profitability. The findings of this study suggest that companies need to focus on managing and utilizing their intellectual capital to increase the value of their shares in the market.
Recommendations
Based on the findings of this study, the following recommendations are made:
- Investors and company managers need to consider strategies to increase their intellectual capital capacity, which will have a positive impact on stock prices.
- Companies need to focus on managing and utilizing their intellectual capital to increase the value of their shares in the market.
- A more holistic approach in the company's performance appraisal is needed, outside of only profitability.
Limitations
This study has several limitations, including:
- The sample size is relatively small, with only eight companies selected as samples.
- The data used in this study are limited to the IDXTECHNO index, which may not be representative of the entire Indonesian stock market.
- The study only focuses on the M-VAIC method, which may not be the only approach to measure intellectual capital.
Future Research Directions
Future research directions include:
- Investigating the relationship between intellectual capital and other factors that affect stock prices, such as market capitalization and dividend yield.
- Examining the impact of intellectual capital on the performance of companies in different industries, such as technology and finance.
- Developing a more comprehensive approach to measuring intellectual capital, which takes into account various aspects of a company's intellectual capital.
References
- [List of references cited in the study]
Appendix
- [Appendix materials, including additional tables and figures]
Q&A: Intellectual Capital Analysis with the M-Vaic Method of Stock Prices through Profitability in Companies in the Idxtechno Index on the Indonesia Stock Exchange
Frequently Asked Questions
Q: What is intellectual capital, and why is it important for companies?
A: Intellectual capital refers to the knowledge, skills, and expertise that a company possesses, which can be used to create value for its shareholders. It is an important factor for companies as it can lead to increased profitability, improved competitiveness, and enhanced shareholder value.
Q: What is the M-VAIC method, and how does it measure intellectual capital?
A: The M-VAIC method is a widely used approach to measure intellectual capital, which takes into account various aspects of a company's intellectual capital, including human capital, structural capital, and relational capital. It provides a comprehensive view of a company's intellectual capital and its impact on its performance.
Q: What are the key findings of this study, and what do they imply for companies?
A: The study found that intellectual capital has a positive and significant influence on stock prices and profitability. This means that companies need to focus on managing and utilizing their intellectual capital to increase the value of their shares in the market. It also implies that companies need to consider strategies to increase their intellectual capital capacity, which will have a positive impact on stock prices.
Q: Why did the study find that profitability does not have a significant effect on stock prices?
A: The study found that profitability does not have a significant effect on stock prices because investors may pay more attention to other factors in determining the value of a company's shares, rather than just looking at the profitability produced. This suggests that companies need to focus on other factors, such as intellectual capital, to increase the value of their shares in the market.
Q: What are the implications of this study for investors and company managers?
A: The study implies that investors and company managers need to consider strategies to increase their intellectual capital capacity, which will have a positive impact on stock prices. It also suggests that companies need to focus on managing and utilizing their intellectual capital to increase the value of their shares in the market.
Q: What are the limitations of this study, and how can they be addressed in future research?
A: The study has several limitations, including a relatively small sample size and limited data. Future research can address these limitations by using a larger sample size and collecting more comprehensive data.
Q: What are the future research directions for this study?
A: Future research directions include investigating the relationship between intellectual capital and other factors that affect stock prices, examining the impact of intellectual capital on the performance of companies in different industries, and developing a more comprehensive approach to measuring intellectual capital.
Q: What are the practical implications of this study for companies and investors?
A: The study has practical implications for companies and investors, including the need to focus on managing and utilizing intellectual capital to increase the value of their shares in the market. It also suggests that companies need to consider strategies to increase their intellectual capital capacity, which will have a positive impact on stock prices.
Q: What are the policy implications of this study for regulatory bodies and government agencies?
A: The study has policy implications for regulatory bodies and government agencies, including the need to develop policies and regulations that support the development of intellectual capital in companies. It also suggests that regulatory bodies and government agencies need to provide incentives for companies to invest in intellectual capital.
Q: What are the future research directions for this study in the context of the Indonesian market?
A: Future research directions in the context of the Indonesian market include investigating the relationship between intellectual capital and other factors that affect stock prices in the Indonesian market, examining the impact of intellectual capital on the performance of companies in different industries in the Indonesian market, and developing a more comprehensive approach to measuring intellectual capital in the Indonesian market.