Intellectual Capital and Auditor Factors in Developing the Value of Indonesia and Malaysia Consumer Companies

Saarce Elsye Hatane(1), Teresa Anggraini Siaputra(2), Yosefin Karina(3),


(1) Universitas Kristen Petra, Department of Business Accounting, Surabaya
(2) Universitas Kristen Petra, Department of Business Accounting, Surabaya
(3) Universitas Kristen Petra, Department of Business Accounting, Surabaya

Abstract

The purpose of this paper is to analyze the importance of intellectual capital and corporate governance to company value (Tobin’s Q). Intellectual capital uses the value-added intellectual coefficient (VAIC); and corporate governance based concept for External Auditor (audit quality and auditor tenure) and Audit Committee (size, gender, background). The weighted least square model is used to analyze 121 consumer goods companies listed on Malaysia and Indonesia Stock Exchanges from 2010 to 2017. The results of this study vary for companies in Indonesia and Malaysia. HCE and CEE are components of VAIC that consistently affect the value of companies in both countries. CEE plays a decisive role, whereas the rise in HCE shrinkages the value of the company. AQ is consistent in aggregate company value. In contrast, the increasing number of women on audit committees diminish the value of the company in Malaysia. Leverage and ROA are control variables that unfailingly increase company value. Future research can consider using more diverse industries and variables.

Keywords

auditor quality, auditor tenure, diversity of audit committee, firm value, value added intellectual capital

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DOI: https://doi.org/10.33455/ijcar.v1i2.103

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