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ISSN : 2456-3676

Title:
THE INFLUENCE OF ASSET UTILIZATION, INTELLECTUAL CAPITAL, AND CORPORATE GOVERNANCE ON CORPORATE FINANCIAL PERFORMANCE (AN EMPIRICAL STUDY ON MINING AND CONSUMER GOOD COMPANIES LISTED IN THE INDONESIA

Authors:
Herman Ruslim & Prisca Jolanda Warsono, Indonosia

Abstract:
The purpose of this study is to obtain empirical evidence regarding asset utilization, intellectual capital, and corporate governance with the indicators of managerial and institutional ownership, which become the predictors of corporate financial performance measured by Return on Equity (ROE). The samples in this study were 136 companies running in mining and consumer goods sectors listed in the Indonesia Stock Exchange during 2012-2015. Those samples were selected by using purposive sampling method. The statistical method used in this study was multiple regression using SPSS version 20. This study revealed that asset utilization (TATO), intellectual capital (VAICTM), and corporate governance with the indicator of managerial ownership (O_MAN) and institutional ownership (O_INST), simultaneously have significant influence on corporate financial performance (ROE). Meanwhile, partial test (t-test) on asset utilization (TATO) and intellectual capital (VAICTM) showed that there is significant influence of each of both variables on corporate financial performance (ROE). On the other hand, corporate governance measured by managerial ownership (O_MAN) and institutional ownership (O_INST) showed no significant influence on corporate financial performance (ROE). All tests were conducted at 95% significance level.

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