The Role of Beta as a Moderating Variable on the Relationship between Intellectual Capital and Financial Performance in Consumer Goods Industry at Indonesia Stock Exchange 2010-2017

Abstract

intellectual Capital and financial performance. The proxies of intellectual capital are Value Added Human Capital (VAHU), Value Added Relational Capital (VACA) and Structural Capital Value Added (STVA), while return on equity (ROE) is used as a proxy of Financial Performance. Sample of this study were 17 industrial goods consumer companies found on the IDX during 2010 to 2017 based on purposive sampling method and were in accordance with the criteria in this study. After identifying the data, outliers occurred in this study and finally produced 115 samples that were ready to be analyzed and tested. Hypothesis was tested using multiple linear regression with a significance level of 5%. The results of this study indicate that the VAHU has positive effect on financial performance, VACA has negative effect on financial performance. But STVA has no significant effect on financial performance. Research findings provide empirical evidence that Beta moderate the effect of intellectual capital on ROE. However, the effects are mixed, firm with lower absolute beta has moderate the effect of intellectual capital on financial performance, while it is not found at firm with higher absolute beta. The results is consistent after being controlled by size.