The Impact of Green Intellectual Capital on Financial Performance: Case of Indonesian Manufacturing Industry During Pandemic
DOI:
https://doi.org/10.53840/jmm.v14i1.165Keywords:
Green Intellectual Capital, Financial Performance, Value Added Capital Employed, Value Added Human Capital, Structural Capital Value AddedAbstract
The financial performance is an important signal to investors about the sustainability of the company in its industry. Optimizing the company's resources is the key to being competitive, especially in times of crisis, including pandemics. The company’s intangible assets such as intellectual capital and unique resources can increase the company's competitive advantage. Then, the implementation of green business concepts encourages companies to focus on creating green programs supported by human resources intellectual thinking namely Green Intellectual Capital. The purpose of this study is to examine whether there is a relationship between green intellectual capital proxied by Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), Structural Capital Value Added (STVA), and the firm's financial performance as proxied using Return on Asset (ROA) and Return on Equity (ROE). The sample used was 15 manufacturing companies listed in the Indonesia Exchange in 2020-2021. The data were analyzed descriptively and the panel data regression was used to test the hypotheses as well as the robustness test for the research model. The finding indicated that there is an influence between VACA and VAHU on ROA and ROE. The company could improve its performance in both normal and abnormal periods by managing its intellectual assets, especially Value Added Capital Employed and Value Added Human Capital.
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