Intellectual Capital Disclosures and Corporate Governance in Gaining the Firms’ Non-Discretionary Profits and Market Value in ASEAN-5
Articles
Saarce Elsye Hatane
Petra Christian University
https://orcid.org/0000-0002-3797-1623
Felicia Nathania
Petra Christian University
https://orcid.org/0000-0001-9467-2745
Jocelyn Lamuel
Petra Christian University
https://orcid.org/0000-0001-6882-811X
Fenny Darusman
Petra Christian University
https://orcid.org/0000-0003-4152-177X
Devie
Petra Christian University
https://orcid.org/0000-0003-3955-4513
Published 2020-12-30
https://doi.org/10.15388/omee.2020.11.34
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Keywords

Non-discretionary Net Income
Accounting-based Performance
Market-based Performance
Intellectual Capital Disclosure
Good Corporate Governance

How to Cite

Hatane, S.E. (2020) “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, 11(2), pp. 276–304. doi:10.15388/omee.2020.11.34.
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Vol. 11 No. 2 (2020)

Intellectual Capital Disclosures and Corporate Governance in Gaining the Firms’ Non-Discretionary Profits and Market Value in ASEAN-5

Abstract

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.

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