The Effect of Good Corporate Governance on Intellectual Capital Disclosure and Its Impact on Company Performance: A Study on Banking Companies Listed on BEI

Abstract

This study aims to analyze the effect of Good Corporate Governance  on Intellectual Capital Disclosure and its impact on company performance. The sample of this study is banking companies listed on the Indonesia Stock Exchange (BEI) in 2014-2016, as many as 34 companies. The research method used is a quantitative descriptive approach with statistical analysis in the form of multiple linear regression test and path analysis.The results of the study show that Good Corporate Governance proxied with the proportion of independent commissioners has no effect on ICD, audit committees proxyed from the number of meetings have a positive effect on ICD, while ICD itself has no effect on Company Performance as measured by ROE. The magnitude of Independent Commissioner's variables effect on Corporate Performance directly is -0,086 meanwhile through Intellectual Capital Disclosure variable, it becomes smaller by -0,010. Thus, it appears that the direct influence is greater than the indirect influence, meaning that the Intellectual Capital Disclosure variable is not an intervening variable of the Independent Commissioner's variables on Company Performance. The magnitude of the Audit Committee's variables effect on Corporate Performance directly is 0.003 while through the Intellectual Capital Disclosure variable, it becomes smaller by 0.000. Thus it appears that the direct influence is greater than the indirect effect, meaning that the Intellectual Capital Disclosure variable is not an intervening variable of the Audit Committee's variables on Company Performance.

Keywords: Intellectual Capital Disclosure, Good Corporate Governance, Company performance