Title: The influence of intellectual capital through human capital and structural capital towards financial performance manufacturing companies (garment and textile sector)

Authors: Donny Arif; Abdul Halik; Nikma Yucha

Addresses: Universitas Maarif Hasyim Latif, Sidoarjo, Indonesia ' Universitas 17 Agustus 1945 Surabaya, Surabaya, Indonesia ' Universitas Maarif Hasyim Latif, Sidoarjo, Indonesia

Abstract: This study aims to assess the garment and textile companies' financial performance for 2017-2019 with data taken from the IDX by measuring the intellectual capital variable through human capital and structural capital. This study uses a descriptive approach by maximising the regression function analysis method. The process with this method is considered capable of providing a final value that can measure its financial performance and provide acceptable conclusions. Each variable is measured by identifying the value taken from the IDX data for the 2017-2019 period, with the criteria for the number of employees of each company, the capital structure produced by each company, and the fixed asset turnover ratio. This study indicates that financial performance can run well through the direct route with IC without going through HC or structural capital. However, intellectual capital directly affects human capital and structural capital to improve overall financial performance.

Keywords: intellectual capital; human capital; structural capital; financial performance.

DOI: 10.1504/IJLIC.2022.125355

International Journal of Learning and Intellectual Capital, 2022 Vol.19 No.5, pp.395 - 415

Received: 14 Aug 2020
Accepted: 14 Jun 2021
Published online: 07 Sep 2022 *

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