Intellectual Capital, the Capital Market, and Their Effect on the Value of Indonesian Manufacturing Firms Listed on the Indonesian Stock Exchange (IDX) from 2017 to 2020

Abstract

Numerous factors contribute to a company's worth, one of which is Tobin's QThe greater the Tobin's Q value, the more promising the growth prospects of the company. This is because the greater the market valuation of a company's properties is in relation to its market value, the further likely it is that investors will make further sacrifices to acquire the firm. This research would investigate the relationship between human capital, capital markets, and firm valuation. Intellectual capital was quantified using the Public model—Q Tobin's quantifies a significant discount. Meanwhile, three control variables exist, which are scale, leverage, and development. The population of this sample is manufacturing firms that are publicly traded on the Indonesian Stock Exchange (BEI) between 2017 and 2020. Purposive sampling was used to assemble the survey, which included 252 individuals (firm-years). Multiple regression analyses and descriptive statistics are used in this report. Eviews 8.0 is used to analyze the data. According to this report, the VAIC (value-added intellectual coefficient) and stock market value have little impact on firm value. Meanwhile, the three control variables used have little impact on the intensity of the values.