The Effect of Funding Decisions and Intellectual Capital on Firm Value with Profitability as an Intervening Variable in Manufacturing Companies Listed on the Indonesia Sharia Stock Index

Fitra Nur Uswatun Khasanah, D. Agus Harjito

Funding Decisions, Intellectual Capital, Profitability, Firm Value.

This study examines the effect of funding decisions and intellectual capital on firm value with profitability as an intervening variable in  manufacturing companies listed on the Indonesia Sharia Stock Index (ISSI). This study uses DER as an indicator of funding decisions, VAIC as an indicator of intellectual capital, ROA as an indicator of profitability and Tobin's Q as an indicator of corporate value. The sample used in this study is the manufacturimg companies listed on the Indonesia Sharia Stock Index (ISSI) in the 2014-2018 period. The data obtained were 290 samples. This study uses multiple regression to analyze data and path analysis to determine the effect of mediation. The results showed that funding decisions have a negative effect on profitability, intellectual capital has a positive effect on profitability. Funding decisions (DER) and profitability (ROA) have a positive effect on firm value (Tobin's Q) but intellectual capital (VAIC) has a negative effect on firm value (Tobin's Q). Profitability (ROA) can’t mediate the effect of funding decisions (DER) on firm value (Tobin's Q) but profitability (ROA) can mediate the effect of intellectual capital (VAIC) on firm value (Tobin's Q).

https://doi.org/10.31871/IJNTR.6.7.12