THE INFLUENCE OF INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE ON COMPANY VALUE (AN EMPIRICAL STUDY OF LQ45 COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE)

Abstract

Intellectual capital is believed to have a positive relationship with the company's market value and company performance. In addition to intellectual capital, there are additional aspects that determine business value, such as Company Performance. This study uses a quantitative method with a structural equation model (SEM) which is a novelty from previous research. This study uses 3 variables, the independent variable is: Intellectual Capital, the mediating variable is financial performance and the dependent variable is firm value. The findings indicate that intellectual capital has a favorable and considerable impact on a company's financial performance and market value. Financial success has a positive and significant impact on the company's market value. Overall intellectual capital and financial performance have a beneficial influence on the financial performance.