The Influence Of Intellectual Capital And Ownership Structure On The Manufacturing Company Mockup Value On The Indonesia Stock Exchange

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The Influence of Intellectual Capital and Ownership Structure on the Manufacturing Company Mockup Value on the Indonesia Stock Exchange

Introduction

The manufacturing sector is a crucial component of the Indonesian economy, and the companies listed on the Indonesia Stock Exchange (IDX) play a significant role in driving the country's economic growth. However, the performance of these companies is influenced by various factors, including intellectual capital and ownership structure. This study aims to investigate the effect of intellectual capital and ownership structure on the market value and financial performance of manufacturing companies listed on the IDX.

The Role of Intellectual Capital in Company Performance

Intellectual capital (IC) is an essential factor in determining the performance of a company, especially in the competitive manufacturing sector. IC is measured through three main components: Value Added Capital Employed (VACA), Value Added Human Capital (Vahu), and Structural Capital Value Added (STVA). Each of these components plays a crucial role in driving company performance.

Value Added Capital Employed (VACA)

VACA measures how effective a company is in managing its assets to generate profits. Research has shown that VACA has an insignificant negative effect on Market to Book Value (M/B), which may indicate that the company might not be using its assets optimally to increase market value. This finding suggests that companies need to focus on optimizing their asset utilization to improve their market value.

Value Added Human Capital (Vahu)

Vahu measures the investment in human resources by training and skills development. Research has found that Vahu has a positive and significant effect on M/B, reflecting the importance of a skilled workforce in increasing company productivity and competitiveness. This finding highlights the need for companies to invest in human capital development to improve their performance.

Structural Capital Value Added (STVA)

STVA assesses the added value of the organizational structure and management system. Research has shown that STVA has a negative and significant impact on M/B, which may be caused by a deficiency in internal management or lack of innovation needed to encourage market value growth. This finding suggests that companies need to focus on improving their organizational structure and management system to improve their market value.

Ownership Structure and Its Impact on the Company

The structure of ownership also plays an important role in directing the company's strategic decisions. Managerial ownership and foreign ownership have a negative influence on market value, indicating management risks that may not be in line with the interests of shareholders. Meanwhile, public ownership has a positive effect, although not significant, showing that community participation in company ownership can create better transparency and accountability.

Conclusion

From the findings of this research, it can be concluded that the management of intellectual capital and good ownership structure is very important for manufacturing companies listed on the IDX. Investment in human capital and an innovative approach to the organizational structure can significantly increase the company's market value. Therefore, companies need to continue to adapt and increase their capabilities to remain competitive in increasingly dynamic markets.

Recommendations

Based on the findings of this research, the following recommendations are made:

  1. Invest in human capital development: Companies should invest in human capital development to improve their productivity and competitiveness.
  2. Optimize asset utilization: Companies should focus on optimizing their asset utilization to improve their market value.
  3. Improve organizational structure and management system: Companies should focus on improving their organizational structure and management system to improve their market value.
  4. Promote public ownership: Companies should promote public ownership to create better transparency and accountability.
  5. Continuously adapt and increase capabilities: Companies should continue to adapt and increase their capabilities to remain competitive in increasingly dynamic markets.

Limitations of the Study

This study has several limitations, including:

  1. Sample size: The sample size of 31 manufacturing companies listed on the IDX may not be representative of the entire manufacturing sector.
  2. Time period: The observation period of 2009-2013 may not capture the current market trends and conditions.
  3. Data availability: The availability of data may be limited, which may affect the accuracy of the findings.

Future Research Directions

Future research should focus on:

  1. Investigating the impact of intellectual capital on company performance in other industries: Research should be conducted to investigate the impact of intellectual capital on company performance in other industries.
  2. Examining the role of ownership structure in company performance: Research should be conducted to examine the role of ownership structure in company performance.
  3. Investigating the impact of market trends and conditions on company performance: Research should be conducted to investigate the impact of market trends and conditions on company performance.

By understanding the influence of intellectual capital and ownership structure on the manufacturing company mockup value on the IDX, companies can make informed decisions to improve their performance and remain competitive in the market.
Frequently Asked Questions (FAQs) on the Influence of Intellectual Capital and Ownership Structure on the Manufacturing Company Mockup Value on the Indonesia Stock Exchange

Q: What is intellectual capital, and how does it affect company performance?

A: Intellectual capital (IC) refers to the knowledge, skills, and expertise that a company possesses. It is a key driver of company performance, and its components, including Value Added Capital Employed (VACA), Value Added Human Capital (Vahu), and Structural Capital Value Added (STVA), play a crucial role in determining company success.

Q: What is the significance of Value Added Capital Employed (VACA) in company performance?

A: VACA measures how effectively a company is in managing its assets to generate profits. Research has shown that VACA has an insignificant negative effect on Market to Book Value (M/B), indicating that companies may not be using their assets optimally to increase market value.

Q: How does Value Added Human Capital (Vahu) impact company performance?

A: Vahu measures the investment in human resources by training and skills development. Research has found that Vahu has a positive and significant effect on M/B, reflecting the importance of a skilled workforce in increasing company productivity and competitiveness.

Q: What is the role of Structural Capital Value Added (STVA) in company performance?

A: STVA assesses the added value of the organizational structure and management system. Research has shown that STVA has a negative and significant impact on M/B, which may be caused by a deficiency in internal management or lack of innovation needed to encourage market value growth.

Q: How does ownership structure affect company performance?

A: The structure of ownership plays an important role in directing the company's strategic decisions. Managerial ownership and foreign ownership have a negative influence on market value, indicating management risks that may not be in line with the interests of shareholders. Meanwhile, public ownership has a positive effect, although not significant, showing that community participation in company ownership can create better transparency and accountability.

Q: What are the implications of this study for companies listed on the Indonesia Stock Exchange?

A: The findings of this study suggest that companies listed on the IDX should focus on managing their intellectual capital and ownership structure to improve their market value. Investment in human capital and an innovative approach to the organizational structure can significantly increase the company's market value.

Q: What are the limitations of this study?

A: This study has several limitations, including a sample size of 31 manufacturing companies listed on the IDX, a time period of 2009-2013, and limited data availability.

Q: What are the future research directions for this study?

A: Future research should focus on investigating the impact of intellectual capital on company performance in other industries, examining the role of ownership structure in company performance, and investigating the impact of market trends and conditions on company performance.

Q: How can companies use the findings of this study to improve their performance?

A: Companies can use the findings of this study to improve their performance by investing in human capital development, optimizing asset utilization, improving their organizational structure and management system, promoting public ownership, and continuously adapting and increasing their capabilities to remain competitive in increasingly dynamic markets.

Q: What are the implications of this study for policymakers and regulators?

A: The findings of this study suggest that policymakers and regulators should consider the impact of intellectual capital and ownership structure on company performance when developing policies and regulations to support the growth and development of the manufacturing sector in Indonesia.