Intellectual Capital, Institutional Ownership, and Capital Structure on Firm Performance: Company size as a Moderating Variable

Abstract

This study aims to analyze the impact of intellectual capital, institutional ownership, and capital structure on firm performance. Additionally, this research examines the interaction effect of firm size in explaining the influence of these independent variables on firm performance. The study analyzes 224 observational data points using a purposive sampling technique from companies listed in the Kompas 100 index during the 2020–2023 period. Panel data regression is used to test six proposed hypotheses. The findings indicate that intellectual capital and institutional ownership have a positive effect on firm performance, while capital structure has a negative effect on firm performance. Firm size strengthens the positive effect of intellectual capital on firm performance and reinforces the negative effect of institutional ownership and capital structure on firm performance. These results provide valuable insights for investors and management in making strategic decisions.