THE INFLUENCE OF INTELLECTUAL CAPITAL USING M- VAIC MODEL ON THE VALUE OF THE FIRM TECHNOLOGY SECTOR LISTED ON INDONESIA STOCK EXCHANGE

Abstract

The advancement of technology has increased competition between companies. Related to this, most of companies in Indonesia face the problem of not being able to adequately face market competition, so strategies and innovations are needed so that companies can achieve competitiveness and win the competition. Improvising business strategies by utilizing intellectual capital as an intangible asset can create competitive advantages that can increase the firm value. Therefore, this research was conducted to test the effect of intellectual capital as well as the components of VACA, VAHU, STVA, and RCVA measured using Modified Value Added Intellectual Coefficient on the value of technology sector companies listed on the Indonesia Stock Exchange in 2017-2023 measured using Tobin's Q. The sample obtained was 9 companies taken based on the purposive sampling method. This research uses a quantitative approach with panel data using Eviews 12 software as the data analysis technique to test the hypothesis. This findings show that VACA, VAHU, STVA, and RCVA simultaneously influence the firm value. However, partially only VAHU and RCVA has positive influence on the firm value. As a limitation, the sample used in this research has limited number of the firm, therefore the researcher suggests to use a larger number of samples in order to obtain results more accurate in describing the actual conditions.