Intellectual Capital Measurement: Extended-Vaic Vs Vaic Which One Is Better?

Abstract

This study aims to make comparison between two measurement model for Intellectual Capital and explore its impact on financial and stock performance. As many as 19 non-financial companies with 183 observations for the period of 2010-2020 (unbalanced panel) was used for regression model. Fixed Effect Model with robust is the most suitable model for panel data regression in this research. According to the results both models are fit to predict internal financial performance with ROA and ROE as proxy but not fit to predict stock valuation in the market with MBV as proxy. VAIC model is better for IC measurement than E-VAIC model. Human Capital is the most significant component both for VAIC and E-VAIC model. The result also indicated that Relationship capital efficiency has pure moderating role.