Influence of Intellectual Capital and Dividend Policy on the Investment Opportunity Set And The Company Intrinsic Value In The Foreign Capital Companies Indonesia Stock Exchange

Abstract

This study aims to analyze the influence of intellectual capital and dividend policy on the company intrinsic value with investment opportunity as intervening variable. Intellectual capital is proxied with Value Added Intellectual Capital (VAIC^TM), dividend policy is proxied with dividend yield, Investment Opportunity Set (IOS) is proxied with market to book asset ratio and intrinsic value of company is proxied with net present value from projection of Free Cash Flow to Firm (FCFF). The sample in this research is 31 Foreign Capital Investment companies in 2015. The result of research at first substructure at alpha 5%, indicate that intellectual capital have a significant positive effect and dividend policy has significant negative effect to investment opportunity set. Intellectual capital and dividend policy simultaneously affect the investment opportunity set. The second substructure research results at alpha 5%, indicating that intellectual capital and investment opportunities set have a significant positive effect on the intrinsic value of the company, but dividend policy has no effect and insignificant to the intrinsic value of the company. In addition, the three variables simultaneously affect the intrinsic value of the firm. So from the results of the study as a whole showed that intellectual capital directly and indirectly affect the intrinsic value of the company; Dividend policy only has an indirect effect on intrinsic value of the company.

Keywords: intellectual capital, dividend policy, investment opportunity set, intrinsic value of company.