Does intellectual capital have any influence on stock price crash risk?

Abstract

PurposeThis paper explores the influence between intellectual capital (IC) and the risk of stock price crashes by using company performance as an intervening variable.Design/methodology/approachThis study empirically analyzes the impact of the efficiency of IC on stock price crash risk using a sample size of 152 companies listed on the Indonesia Stock Exchange (IDX) during 2018. To test the research hypotheses, regression analysis and path analysis were applied. In addition, the researchers added exploration to several studies to strengthen the results of this study.FindingsThis study’s findings indicate that investors' optimistic (pessimistic) sentiment regarding stock price volatility has obscured aspects of the financial performance of listed companies. This finding implies that investor sentiment has dominated influence on stock price crash risk so that the aspects of IC are obscured.Originality/valueThis research provides new information that IC disclosure in the stock market needs to include knowledge of the volatility of stock prices in order to reveal stock price crash risk.

The Influence of Intellectual Capital and Financial Performance on the Stock Prices of Commercial Banks in Indonesia with Company Size as a Moderation Variable

“…Value Added Intellectual Capital (VAICTM) has a probability value of 0.8180 > 0.05, therefore H1 is rejected, meaning that Value Added Intellectual Capital does not affect stock prices in the KBMI III and KBMI IV category banks for the period 2017 -2022. This research result is consistent with (Safitri et al, 2020), (Farhanah & Mutasowifin, 2022), (Fatimah & Bagasworo, 2021), (Dani Yudhitya & Agustina Prihastiwi, 2023), and (Probohudono et al, 2022). However, this research differs from studies by (Handayani & Karnawati, 2021), (Safira et al, 2023), (Sunardi et al, 2019), and (Agustin, 2023) which state that Value Added Intellectual Capital affects Stock Prices.…”

Does sharia-compliant debt financing reduce stock price crash risk?

“…On the other hand, researchers take the fundamental analysis hypothesis, engaging it with a resource base view and asymmetric information theory to reveal the determinants of PCR from an organization's fundamental variables. The empirical studies test the effect of climate change disclosure (Lin and Wu, 2023), ESG (Gao et al ., 2022), intellectual capital (Probohudono et al ., 2021), local CEO's ability (Chen et al ., 2022a), political orientation (Chen et al ., 2022b) and product market competition (Benkraiem et al ., 2022) on PCR. It is in line with Jin and Myers (2006), who suggested that companies may be incentivized to withhold bad news to absorb certain downside risks.…”