Assessing the Relationship between Company Value and Intellectual Capital Disclosure Before and During Covid-19: Evidence Indonesia IT Companies

Abstract

The purpose of this research is to examine the effect of Value Added Intellectual Coefficient (VAICTM) consisting of Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), Structural Capital Value Added (STVA) on firm value by Tobin's Q. The data used in this study secondary data in the form an annual IT companies report listed on the Indonesia Stock Exchange. The sample collection has done by purposive sampling method. The hypothesis testing is done using the PLS Structural Equation Model. The results showed that Structural Capital Value Added (STVA) does not have any significant effect on firm value. Meanwhile, Value Added Intellectual Coefficient (VAICTM), Value Added Capital Employed (VACA), Value Added Human Capital (VAHU) have a positive effect on firm value and there is no significant difference of IC before and during Covid-19 on firm value by Tobin's Q. The results of this study will increase understanding in assessing how intellectual capital can add value to the company, especially for the IT sector when experiencing business difficulties. It is expected that companies that invest in intellectual capital then the company will have a good effect on firm value and are expected to provide long-term benefits.