Studying Effect of Intellectual Capital and Firm Size on Financial Performance (Case Study: Food and Beverages Company Listed in Indonesia Stock Exchange)

Abstract

This study aims to test how the combination of intellectual elements of capital and company size in improving the financial performance of companies in the food and beverage industry. Companies with the ability to manage intellectual capital to the maximum can create value for the company.  Companies get added value with the company's ability to manage its resources optimally. This study uses a quantitative approach. The analytical tool used in this study is multiple linear regression analysis.  The study used food and beverages companies listed on the Indonesia Stock Exchange in 2015-2019.  Components of intellectual capital (Capital Employed, Human Capital, Structural Capital) and the size of the company against the company's financial performance. But this study shows that the size of the company has no effect on the company's financial performance.  This research provides an understanding that intellectual capital provides better value added than the size of a company's assets.