INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE: EVALUATING ASSET TURNOVER

Abstract

This study aims to provide empirical evidence on the influence of Intellectual Capital on financial performance in secondary manufacturing companies listed on the Indonesia Stock Exchange during the 2021–2023 period. The components of Intellectual Capital examined include Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), and Structural Capital Value Added (STVA), while financial performance is measured using the Asset Turnover (ATO) ratio. The research sample was selected using purposive sampling, resulting in 114 companies and 239 observations. Hypothesis testing was conducted using multiple linear regression analysis. The results show that VACA has a positive and significant effect on financial performance, while VAHU and STVA do not show a significant partial effect. However, all three components of Intellectual Capital are found to have a significant joint effect on financial performance. These findings suggest that the efficiency of capital employed plays a crucial role in enhancing asset effectiveness, while the contributions of human and structural capital require further management to drive operational efficiency.