Intellectual Capital and Capital Structure: Does It Shape the Value of the Insurance Firms?

  • Muhammad Agusalim Universitas Terbuka, Indonesia
  • Tasrim Tasrim Sekolah Tinggi Ilmu Ekonomi Makassar Maju, Indonesia
  • Wahda Wahda Universitas Hasanuddin, Indonesia
Keywords: intellectual capital, capital structure, firm’s value (Tobin's Q)


This study aims to explore the relationship between intellectual capital and capital structure  that shaping the value of insurance firms listed on the Indonesia Stock Exchange, using corporate financial statement data. Descriptive statistics and multiple regression analysis were used. This study provides an overview of the importance of managing intellectual capital (human capital, capital structure and relation capital) in shaping firm’s value. Agents are an inseparable part of intellectual capital (intangible assets) and are very meaningful in the firm's operations. The result indicates that intellectual capital and capital structure shaping the firm's value. It also provides information about the relationship of capital structure and firm’s value, especially in MM theory (tax), but the firms need to look at trends off the use of debt in their capital structure.


Agyei-Mensah, B. K. (2012) ‘The Impact of Contingent Factors on Performance Measures in the Rural Banks of Ashanti Region of Ghana’, SSRN Electronic Journal, 2(8), pp. 78–110. doi: 10.2139/ssrn.1960479.
Aivazian, V. A., Ge, Y. and Qiu, J. (2005) ‘The impact of leverage on firm investment: Canadian evidence’, Journal of Corporate Finance, 11(1–2), pp. 277–291. doi: 10.1016/S0929-1199(03)00062-2.
Antwi, S., Mills, E. and Zhao, X. (2012) ‘Capital structure and firm value: Empirical evidence from Ghana’, International Journal of Business and Social Science, 3(22), pp. 103–111.
Archibugi, D., Filippetti, A. and Frenz, M. (2013) ‘The impact of the economic crisis on innovation: Evidence from Europe’, Technological Forecasting and Social Change. Elsevier B.V., 80(7), pp. 1247–1260. doi: 10.1016/j.techfore.2013.05.005.
Arifin (2005) Teori Keuangan dan Pasar Modal. Yogyakarta: Ekosinia.
Bacidore, J. M. et al. (1997) ‘The search for the best financial performance measure’, Financial Analysts Journal, 53(3), pp. 11–20. doi: 10.2469/faj.v53.n3.2081.
Baker, M. and Wurgler, J. (2002) ‘Market timing and capital structure’, Journal of Finance, 57(1), pp. 1–32. doi: 10.1111/1540-6261.00414.
Bangun, N. and Wati, S. (2007) ‘Analisis Pengaruh Profitabilitas dan Kebijakan Dividen terhadap Nilai Perusahaan Perdagangan, Jasa dan Investasi yang Terdaftar di Bursa Efek Jakarta’, Jurnal Akuntansi/Tahun XI, 2, pp. 107–120.
Barney, J. (1991) ‘Firm Resources and Sustained Competitive Advantage’, Journal of Management, 17(1), pp. 99–120. Available at: 2011/S10/Barney (1991).pdf.
Berzkalne, I. and Zelgalve, E. (2014) ‘Innovation and Firm’s Value: Evidence from the Baltic Countries’, Regional Formation and Development Studies, 3(3), pp. 39–51. doi: 10.15181/rfds.v11i3.608. (2017) Ini yang Pengaruhi Kinerja Asuransi Umum Sepanjang 2017. Available at: (Accessed: 1 March 2018).
Bonazzi, L. and Islam, S. M. N. (2007) ‘Agency theory and corporate governance: A study of the effectiveness of board in their monitoring of the CEO’, Journal of Modelling in Management, 2(1), pp. 7–23. doi: 10.1108/17465660710733022.
Brigham, E. F., J. H. (2001) Manajemen Keuangan. Edisi Kede. Edited by H. Wibowo. Jakarta: Erlangga.
Bronzetti, G. and Veltri, S. (2013) ‘Intellectual capital reporting in the Italian non-profit sector: Analysing a case study’, Journal of Intellectual Capital, 14(2), pp. 246–263. doi: 10.1108/14691931311323878.
Cabrita, M. do R. and Landeiro, J. (2005) ‘Intellectual Capital and Value Creation: Evidence from the Por-tuguese Banking Industry’, Electronic Journal of Knowledge Management, 4(1), pp. 11–20.
Chen, M. C., Cheng, S. J. and Hwang, Y. (2005) ‘An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance’, Journal of Intellectual Capital, 6(2), pp. 159–176. doi: 10.1108/14691930510592771.
Clay, D. G. (2001) Instituional Ownership, CEO Incentive, and Firm Value. The University of Chicago, Chicago, Illinois.
Coad, A. and Rao-Nicholson, R. (2006) ‘Innovation and market value: A quantile regression analysis’, Economics Bulletin, 15, pp. 1–10.
Cong, A. and López-de-silanes, F. (2006) ‘Corporate Governance and Firm Value in Mexico’.
Daly, H. (2015) ‘Conflicts of Interest in Agency Theory : A’, Global Journal of Human-Social Science: E Economics, 15(1).
Darmawati, D., Khomsiyah, K. and Rahayu, R. G. (2005) ‘Hubungan Corporate Governance dan Kinerja Perusahaan’, The Indonesian Journal of Accounting Research, 8(1).
Dotzel, T., Shankar, V. and Berry, L. L. (2013) ‘Service innovativeness and firm value’, Journal of Marketing Research, 50(2), pp. 259–276. doi: 10.1509/jmr.10.0426.
Greenwood, R. (2003) ‘Commentary on: “Toward a theory of agency and altruism in family firms”’, Journal of Business Venturing, 18(4), pp. 491–494. doi: 10.1016/S0883-9026(03)00056-9.
Harris, M. and Raviv, A. (1991) ‘The Theory of Capital Structure’, Journal of CFinance, 46(1), pp. 297–355. doi: 10.1017/CBO9781107415324.004.
Hartono, J. (2003) Teori Portofollio dan Analisis Investasi,. 5th edn. Yogyakarta: BPEE.
Henry, L. (2013) ‘Intellectual capital in a recession: Evidence from UK SMEs’, Journal of Intellectual Capital, 14(1), pp. 84–101. doi: 10.1108/14691931311289039.
Hoque, J., Hossain, A. and Hossain, K. (2014) ‘Impact of Capital Structure Policy on Value of the Firm – A Study on Some Selected Corporate Manufacturing Firms Under Dhaka Stock Exchange’, Ecoforum, 3(2), p. 9.
Husnan, S., E. P. (2004) Dasar-dasar Manajemen Keuangan. Yogyakarta: UUP -AMP YKP.
Husnan, S., E. P. (2012) Dasar-Dasar Manajemen Keuangan. 6th edn. Yogyakarta: UPP STIM YKPN.
Iazzolino, G. and Laise, D. (2013) ‘Value added intellectual coefficient (VAIC): A methodological and critical review’, Journal of Intellectual Capital, 14(4), pp. 547–563. doi: 10.1108/JIC-12-2012-0107.
J. Mc Connel, J. and Sarvaes, H. (1990) ‘Additional Evidence on Equity Ownership and Corporate Value’, Journal of Financial Economics, 27, pp. 595–612.
Jensen, M. C. and Meckling, W. H. (1976) ‘Theory of The Firm Manajerial Behaviour, Ageny Cost and Ownership structure’, Journal of Financial Economics, 3, pp. 305–360. (2018) Premi cuma naik 3,14%, rapor kinerja asuransi umum di 2017 meleset dari target. Available at: (Accessed: 1 March 2018).
Masulis, R. W. (1983) ‘The Impact of Capital Structure Change on Firm Value: Some Estimates’, The Journal of Finance, 38(1), pp. 107–126. doi: 10.1111/j.1540-6261.1983.tb03629.x.
Mel, S. De, Mckenzie, D. and Woodruff, C. (2009) ‘Innovative Firms or Innovative Owners ? Determinants of Innovation in Micro , Small , and Medium Enterprises’, (3962).
Modigliani, F. and Miller, M. H. (1958) ‘The Cost of Capital, Corporation Finance and The Theory of Investment’, The American Economic Review, XLVIII(3), pp. 261–297. doi: 10.1136/bmj.2.3594.952.
Modigliani, F. and Miller, M. H. (1963) ‘American Economic Association Corporate Income Taxes and the Cost of Capital : A Correction’, American Economic Review, 53(3), pp. 433–443. doi: 10.1126/science.151.3712.867-a.
Mondy, R. W. (2008) Manajemen Sumber Daya Manusia. 10th edn. Jakarta: Erlangga.
Myers, S. C. (1984) ‘The Capital Structure Puzzle’, The Journal of Finance, XXXIX(3), pp. 575–592. doi: 10.1111/j.1540-6261.1984.tb03646.x.
Pasternack, D. and Rosenberg, M. (2002) ‘The Impact of Stock Option Incentives on Investment and Firm Value’, (November), pp. 103–119.
Riyanto, B. (1999) Dasar-dasar Pembelajaran Perusahaan. Yogyakarta: BPFE.
Ross, S. A. (1977) ‘Determination of Financial Structure: the Incentive-Signalling Approach.’, Bell J Econ, 8(1), pp. 23–40.
Ruan, W., Tian, G. and Ma, S. (2009) ‘Managerial ownership, capital structure and firm value’, Corporate Ownership and Control, 7(2 A), pp. 71–82. doi: 10.22495/cocv7i2p6.
Sari Kusumastuti, Supatmi Supatmi and Perdana Sastra (2007) ‘Pengaruh Board Diversity Terhadap Nilai Perusahaan Dalam Perspektif Corporate Governance’, Jurnal Akuntansi dan Keuangan, 9(2), pp. 88–98. Available at:
Sawarjuwono, T. and Kadir, A. P. (2003) ‘Intellectual Capital : Perlakuan, Pengukuran dan Pelaporan’, Jurnal Akuntansi dan keuangan, 5 No 1, pp. 35–57.
Shin, H.-H. and Stulz, R. M. (2000) ‘Firm Value, Risk, and Growth Opportunities’, SSRN Electronic Journal, (June). doi: 10.2139/ssrn.234344.
Shin, M.-S. and Kim, S. (2010) ‘The effects ffects of R & D expenditure on the firm value : evidence from korean small and medium sized enterprises 1’, pp. 1–20.
Sorescu, A. B. and Spanjol, J. (2008) ‘Innovation’s effect on firm value and risk: Insights from consumer packaged goods’, Journal of Marketing, 72(2), pp. 114–132. doi: 10.1509/jmkg.72.2.114.
Sullivan, P. H. (2000) ‘Valuing intangibles Firms ??? An intellectual capital approach’, Journal of Intellectual Capital, 1(4), pp. 328–340. doi: 10.1108/14691930010359234.
Tan, H. P., Plowman, D. and Hancock, P. (2007) ‘Intellectual capital and financial returns of Firms’, Journal of Intellectual Capital, 8(1), pp. 76–95. doi: 10.1108/14691930710715079.
Tobing, P. L. (2007) Knowledge Management: Konsep, Arsitektur dan Implementasi. Yogyakarta: Graha Ilmu.
Uchida, K. (2006) ‘Determinants of stock option use by Japanese Firms’, Review of Financial Economics, 15(3), pp. 251–269. doi: 10.1016/j.rfe.2005.08.001.
Ul Rehman, W. et al. (2013) ‘Intellectual capital performance and its impact on Corporate Performance: An empirical evidence from Modaraba sector of Pakistan’, African Journal of Business Management, 5(20), pp. 8041–8049. doi: 10.5897/AJBM10.1088.
Usunariyah (2003) Pengantar Pasar Modal. Yogyakarta: UPP MPP YKPN.
Vergauwen, P., Bollen, L. and Oirbans, E. (2007) ‘Intellectual capital disclosure and intangible value drivers: An empirical study’, Management Decision, 45(7), pp. 1163–1180. doi: 10.1108/00251740710773961.
Widarjo, W. (2011) ‘Pengaruh Modal Intelektual Dan Pengungkapan Modal Intelektual Pada Nilai Perusahaan Yang Melakukan Initial Public Offering’, Jurnal Akuntansi dan Keuangan Indonesia, 8(2), pp. 157–170. doi: 10.21002/jaki.2011.10.
Yazdanifard, R. and Nia, M. E. (2011) ‘The Impact of New Intellectual Capital on a firm ’ s Market Share value’, The Impact of New Intellectual Capital on a firm’s Market Share value, 10(January 2011), pp. 285–289.
Yusuf and Sawitri, P. (2009) ‘Modal Intelektual Dan Market Performance’, 3, pp. 21–22.
Zeitun, R. and Tian, G. (2007) ‘Capital structure and corporate performance: evidence from Jordan’, Australasian Accounting, Business and Finance Journal, 1(4), pp. 40–61. doi: 10.14453/aabfj.v1i4.3.
Zhang, W. and Cao, L. (2016) ‘Family involvement, internal control and agency costs – Evidences from China’s listed family firms’, Perspectives in Science. Elsevier GmbH, 7(2015), pp. 45–51. doi: 10.1016/j.pisc.2015.11.009.
How to Cite
Agusalim, M., Tasrim, T., & Wahda, W. (2023). Intellectual Capital and Capital Structure: Does It Shape the Value of the Insurance Firms?. Asian Journal of Management, Entrepreneurship and Social Science, 3(01), 304-324.