IPO Companies: The Effect of Intellectual Capital

Abstract

 Intellectual Capital (IC) in the "knowledge economy" has the ability to create value added that can provide a competitive advantage for a company. This study aims to examine the influence of Intellectual Capital (IC) on the financial performance and market value of 71 companies that made an Initial Public Offering (IPO) in 2011-2015. In this research IC is measured by using Value Added Intellectual Capital (VAICTM) method, and to test the effect on financial performances and market value used Partial Least Square (PLS) for the data analysis. The result of the research shows that (1) IC has positive and significant influence on company's financial performance during IPO, (2) IC has positive influence to market value of company during IPO, but it is not significant, (3) IC has positive and significant influence on company's financial performance in the future, and (4) IC has a positive influence on the market value of company in the future, but it is not significant.