FEB lecturer review sustainability reports and the impact of intellectual capital on company performance

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Illustration by Feri Fenoria

UNAIR NEWS – Many of the arguments arising from the analysis of company value calculations have been done by experts and often use traditional measurements in their studies. These studies measure the value of a company through share prices, size, net assets, and others. These arguments arise because their system may indeed be sufficient to measure the value of a company, but it is not sufficient to measure the real value of a company.

Anak Agung Gde Satia Utama SE., M.Ak., Ak., CA, lecturer at FEB UNAIR PSDKU Banyuwangi, studied a case entitled “The influence of sustainability report disclosure as moderating variable towards the impact of intellectual capital on the company performance. “. The purpose of this study is to examine the effect of the Sustainability Report (SR) disclosure as a moderating variable on the impact of Intellectual Capital (IC) on the performance of 21 companies listed on the Indonesian stock exchange and listed on the National Center for SR period 2010-2013.

“This study uses Public model of value-added intellectual coefficients to determine company ICs. The Company’s performance is presented as return on assets (ROA / Return on Assets), return on equity (ROE / Return on Equity), and revenue growth (RG / Revenue Growth), “Agung said.

The conclusion is IC will be more intensive in providing positive effects on ROA and ROE if SR is disclosed more fully. Agung explained that SR disclosure acts as a catalyst. Every time the IC is high, the effect will also be high for ROA and ROE, and vice versa. SR helps companies deliver company IC information that has been published in annual reports.

Another point from this conclusion is that companies in Indonesia need to pay more attention to the value of IC and SR disclosure. Unlike ROA and ROE, which have a significant effect, GM failed to prove the effect on the use of IC and SR in the results of this study. Companies need to be more intensive in SR disclosure because they will get intangible benefits.

“Like SR, companies must pay more attention to the IC, namely human capital, SC, and relationship capital or capital used, because they can produce better company performance,” concluded Agung.

Author: Tsania Ysnaini Mawardi

Editor: Nuri Hermawan


2016 – The influence of sustainability report disclosure as moderating variable towards the impact of intellectual capital on company’s performance – International Journal of Economics and Financial Issues – Utama, A.A.G.S., Mirhard, R.R. – https://www.scopus.com/inward/record.uri?eid=2-s2.0-84979780771&partnerID=40&md5=094048916b1e1ce184fd0c19c4c4010d

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