The Influence of Intellectual Capital on Profitability and Its Impacts on Company's Value (An Empirical Study on Common Banks Listed on Indoensia Stock Exchange, Year 2014)

Abstract

The main purpose of this study is to measure the influence of intellectual capital to profitability, and also the impact to company's value. The data used in this research are secondary data collected from the annual financial report of Common Bank that listing on Indonesian Stock Exchange in 2014.
Subject of the study is annual financial reports of 40 common banks, meanwhile there are 37 banks as research subject with purposive sampling used as a sampling method. The analysis method in this study is a simple linear regression analysis.
The result of this study shows that intellectual capital do not t have any influence to the banks' profitability. Though profitability has an influence to the company's value as the increasing of the ability of the banks to make profit will increase the company value.