The Effect of Intellectual Capital and Profitability on Firm Value

ABSTRACT : This research aims to determine the effect of intellectual capital and profitability on firm valuein bank subsector companies listed on the Indonesia Stock Exchange from 2017 to 2021. The independentvariable, namely intellectual capital, is measured by VAIC™ which is proxied by value added capital employed(VACA), value added human capital (VAHU), and structural capital value added (STVA), and profitability isproxied by ROE (return on equity). The dependent variable in this study is firm value as proxied by Tobin’s Q.The data analysis technique used in this study was purposive sampling approach through the SPSS application.Form the result of research show there is no significant effect between intellectual capital toward firm value andthere is a significant effect between profitability toward firm value.

KEYWORD: Intellectual Capital, VAICTM, VACA, VAHU,STVA, ROE, Tobins’ Q, Signalling Theory