THE EFFECT OF INTELLECTUAL CAPITAL, CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE, AND GOOD CORPORATE GOVERNANCE ON THE VALUE OF MINING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE

Abstract

A company will always attempt to reach its goal by increasing its efficiency and effectiveness. One of the ways to achieve the goal is by improving Intellectual Capital (IC), Corporate Social Responsibility (CSR) and Good Corporate Governance (GCG). Intellectual capital is intellectual material that has been formalized, captured, and leveraged to produce higher valued asset. CSR is social involvement, responsiviness, and accountabilitty of companies apart from their core profit activities. Whereas GCG is a healthy corporate principles to be applied in the management of the company that carried out solely in order to maintain the company's interests in order to achieve the aims and objectives of the company. This study was conducted with the aim of finding empirical evidence about the effect of Intellectual Capital, Corporate Social Responsibility, and Good Corporate Governance on the value of company using multiple linear regression. Intellectual capital was proxied using three components of VAICTM, those are Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), and Structural Capital Value Added (STVA). CSR disclosure is proxied using CSR index from Global reporting Index. Good Corporate Governance is proxied using independent commissioner, managerial ownership, audit committee, institutional ownership. Company value is proxied using Tobin’s Q. This study used secondary data. The population consisted of mining companies listed in Indonesia Stock Exchange in the period of 2010-2014. The data were collected from annual reports of the companies. The sample consisted of 15 mining companies selected using purposive sampling. The hypotheses were tested using t-test. The result showed that VACA, VAHU, and INSO positively and significantly affect company value. STVA and independent commissioner have positive but insignificant effect on company value. Audit committee and managerial ownership have negative and insignificant effect on company value.