The COVID-19 Pandemic Affects Intellectual Capital on the Financial Performance of Pharmaceutical Companies in Indonesia

Abstract

This study aims to examine the effect of Intellectual Capital (IC) on the financial performance of Return On Equity (ROE) of companies in the pharmaceutical sub sector. The population in this study is the financial statements of companies in the pharmaceutical sub sector listed on the Indonesian Stock Exchange during the 2017-2021 period. This study used purposive sampling with 8 companies and 40 observations. This study used quantitative data. Data collection techniques using documentation techniques. Data analysis techniques used in this research are classic assumption test, simple linear regression, F test and t test using the SPSS 21 version as a data processing program. The results showed that the intellectual capital had a positive and significant effect on financial performance. This finding indicates that the more efficient and effective a company is in managing its IC, the more it will improve the company's financial performance. The company's ability to generate profit with the total equity owned by the company is increasing with the company using and making the most of its IC. So this research proves that IC plays an important role in the formation of added value and contributes to improving the company's financial performance. This finding also confirms the resource based theory, that intellectual capital owned by companies is able to create competitive advantages for companies so that they can improve company performance for the better, one of which is increasing company profits.

Does Intellectual Capital Strengthen Environmental Disclosure on Financial Performance During Covid-19?

“…Companies that own and utilize IC as a strategic asset can gain a competitive advantage and good financial performance, as described in the RBV. In the context of the COVID-19 pandemic, research by Welly et al (2023) shows that IC, including aspects related to environmental sustainability, can influence the relationship between ED and FP of pharmaceutical companies. Savitri (2022) found that IC enhances the impact of corporate social responsibility on FP.…”

“…This study also supports the RBV theory by showing that IC can be a valuable resource that enables companies to achieve competitive advantage and good performance amid the pandemic crisis. Based on the theory and previous research from (Afni & Achyani, 2023;Savitri, 2022;Welly et al, 2023), the second hypothesis is obtained as follows: H2 : Intellectual capital moderates the effect of the relationship between environmental disclosure and financial performance.…”

Kinerja Keuangan dan Nilai Perusahaan Sektor Farmasi

“…Kinerja keuangan perusahaan ditentukan oleh berbagai faktor eksternal maupun internal perusahaan. Kinerja perusahaan dapat dinilai dari aspek keuangan yang merupakan faktor internal yang dapat menggambarkan kondisi keuangan suatu perusahaan [15]. Terkait dengan aspek internal, perusahaan perlu mempertimbangkan komposisi dana yang diinvestasikan dalam aktiva dan bukan hanya menentukan besar dana yang diinvestasikan.…”