Intellectual Capital Disclosures and Corporate Governance in Gaining the Firms’ Non-Discretionary Profits and Market Value in ASEAN-5
This study aims to find the effect of Intellectual Capital Disclosure (ICD) and Corporate Governance (CG) on firm performance in ASEAN countries. Firm performance is divided into accounting-based performance and market-based performance. The accounting-based performance consists of Non-Discretionary...
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| Format: | Article |
| Language: | English |
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Vilnius University Press
2020-12-01
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| Series: | Organizations and Markets in Emerging Economies |
| Subjects: | |
| Online Access: | https://www.journals.vu.lt/omee/article/view/15759 |
| _version_ | 1818871311345123328 |
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| author | Saarce Elsye Hatane Felicia Nathania Jocelyn Lamuel Fenny Darusman Devie |
| author_facet | Saarce Elsye Hatane Felicia Nathania Jocelyn Lamuel Fenny Darusman Devie |
| author_sort | Saarce Elsye Hatane |
| collection | DOAJ |
| description | This study aims to find the effect of Intellectual Capital Disclosure (ICD) and Corporate Governance (CG) on firm performance in ASEAN countries. Firm performance is divided into accounting-based performance and market-based performance. The accounting-based performance consists of Non-Discretionary Net Income (NDNI) and Cash Flow Operations (CFO), while market-based performance consists of Tobin’s Q and Market-to-Book Ratio (MBR). The measurement of ICD components uses a scoring system. The sample of this research is 112 firms in the industrial technology listed in the stock exchange of ASEAN-5 between 2011 and 2018. This study finds that NDNI increases when firms increase RCD quality. No ICD components are capable of affecting CFO. On the other hand, SCD is a variable that decreases NDNI value. BGEN is found to reduce NDNI and CFO values. RCD is also the only ICD component that can increase market-based performance, especially MBR. HCD consistently lowers the values of MBR and Tobin’s Q. BSIZE holds a significant role in raising Tobin’s Q score, and BGEN lowers MBR instead. BIND has no part in the market-based performance, but it significantly lowers NDNI value. This study adds another view to ICD’s benefits from two firm performance perspectives, accounting-based performance and market-based performance, especially in ASEAN-5. |
| first_indexed | 2024-12-19T12:20:54Z |
| format | Article |
| id | doaj.art-c62c720b875347c58cf70f57b79c951b |
| institution | Directory Open Access Journal |
| issn | 2029-4581 2345-0037 |
| language | English |
| last_indexed | 2024-12-19T12:20:54Z |
| publishDate | 2020-12-01 |
| publisher | Vilnius University Press |
| record_format | Article |
| series | Organizations and Markets in Emerging Economies |
| spelling | doaj.art-c62c720b875347c58cf70f57b79c951b2022-12-21T20:21:48ZengVilnius University PressOrganizations and Markets in Emerging Economies2029-45812345-00372020-12-0111210.15388/omee.2020.11.34Intellectual Capital Disclosures and Corporate Governance in Gaining the Firms’ Non-Discretionary Profits and Market Value in ASEAN-5Saarce Elsye Hatane0Felicia Nathania1Jocelyn Lamuel2Fenny Darusman3Devie4Petra Christian UniversityPetra Christian UniversityPetra Christian UniversityPetra Christian UniversityPetra Christian UniversityThis study aims to find the effect of Intellectual Capital Disclosure (ICD) and Corporate Governance (CG) on firm performance in ASEAN countries. Firm performance is divided into accounting-based performance and market-based performance. The accounting-based performance consists of Non-Discretionary Net Income (NDNI) and Cash Flow Operations (CFO), while market-based performance consists of Tobin’s Q and Market-to-Book Ratio (MBR). The measurement of ICD components uses a scoring system. The sample of this research is 112 firms in the industrial technology listed in the stock exchange of ASEAN-5 between 2011 and 2018. This study finds that NDNI increases when firms increase RCD quality. No ICD components are capable of affecting CFO. On the other hand, SCD is a variable that decreases NDNI value. BGEN is found to reduce NDNI and CFO values. RCD is also the only ICD component that can increase market-based performance, especially MBR. HCD consistently lowers the values of MBR and Tobin’s Q. BSIZE holds a significant role in raising Tobin’s Q score, and BGEN lowers MBR instead. BIND has no part in the market-based performance, but it significantly lowers NDNI value. This study adds another view to ICD’s benefits from two firm performance perspectives, accounting-based performance and market-based performance, especially in ASEAN-5.https://www.journals.vu.lt/omee/article/view/15759Non-discretionary Net IncomeAccounting-based PerformanceMarket-based PerformanceIntellectual Capital DisclosureGood Corporate Governance |
| spellingShingle | Saarce Elsye Hatane Felicia Nathania Jocelyn Lamuel Fenny Darusman Devie Intellectual Capital Disclosures and Corporate Governance in Gaining the Firms’ Non-Discretionary Profits and Market Value in ASEAN-5 Organizations and Markets in Emerging Economies Non-discretionary Net Income Accounting-based Performance Market-based Performance Intellectual Capital Disclosure Good Corporate Governance |
| title | Intellectual Capital Disclosures and Corporate Governance in Gaining the Firms’ Non-Discretionary Profits and Market Value in ASEAN-5 |
| title_full | Intellectual Capital Disclosures and Corporate Governance in Gaining the Firms’ Non-Discretionary Profits and Market Value in ASEAN-5 |
| title_fullStr | Intellectual Capital Disclosures and Corporate Governance in Gaining the Firms’ Non-Discretionary Profits and Market Value in ASEAN-5 |
| title_full_unstemmed | Intellectual Capital Disclosures and Corporate Governance in Gaining the Firms’ Non-Discretionary Profits and Market Value in ASEAN-5 |
| title_short | Intellectual Capital Disclosures and Corporate Governance in Gaining the Firms’ Non-Discretionary Profits and Market Value in ASEAN-5 |
| title_sort | intellectual capital disclosures and corporate governance in gaining the firms non discretionary profits and market value in asean 5 |
| topic | Non-discretionary Net Income Accounting-based Performance Market-based Performance Intellectual Capital Disclosure Good Corporate Governance |
| url | https://www.journals.vu.lt/omee/article/view/15759 |
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