The Effect of Intellectual Capital towards Firm Values and Risk of Financial Distress (A Study in Banking Sector of Indonesia, Malaysia, Philippines and Thailand)

Abstract

This study aimed to analyze the influence of intellectual capital towards firm value and risk of financial distress in ASEAN Countries such as Indonesia, Malaysia, Philippines, and Thailand. The subject of this research was 36 banking companies listed in Indonesia Stock Exchange (BEI), 30 banking companies listed in Bursa Malaysia (BM), 27 banking companies listed in Philippines Stock Exchange (PSE), and 30 banking companies listed in Stock Exchange of Thailand (SET). The sampling method used in this research was purposive sampling.  Independent variable in this research was intellectual capital measured using VAIC (Value Added Intellectual Capital). The dependent variable was firm value measured using Market to Book (M/B) and risk of financial distress measured using Z-Score Index. This research uses descriptive statistics test and classical assumption test such as normality test, autocorrelation test, heteroskedasticity test, multicollinearity test to test the data before testing the hypothesis. The data pass all of the classical assumption test. The result of the first hypothesis test is that the intellectual capital has positively influence to firm value in Indonesia but not in Malaysia, Philippines and Thailand, and the second hypothesis test is that the intellectual capital has not influence the risk of financial distress in Indonesia, Malaysia, and Philippines but has positively influence in Thailand.