Company Value LQ-45: Intellectual Capital, Quality of Accounting Information and Integrated Reporting

Abstract

This research aims to develop a new model regarding indirect relationships (indirect effect) between Intellectual Capital and the Quality of Accounting Information on Company Value mediated by Integrated Reporting. Apart from that, this research also empirically tests how intellectual capital and the quality of accounting information can contribute to increasing company value and their interaction with integrated reporting. The population in this study includes LQ-45 companies listed on the Indonesia Stock Exchange in the period 2017 to 2022. The sample selection method uses purposive sampling, where the number of samples obtained was 19 companies with 114 observations. The data used is secondary data obtained from annual reports which include financial reports and non-financial reports accessed via the Indonesian Stock Exchange and each company's website. Hypothesis testing is carried out using path analysis (path analysis) using the SEM-PLS application. The research results show that directly (direct effect), Intellectual Capital has a positive and significant effect on Company Value, but has no effect on Integrated Reporting.  On the other hand, the quality of accounting information does not have a good effect on company value but has a negative effect on integrated reporting. On the other hand, Integrated Reporting has a positive and significant effect on Company Value. Indirectly (indirect effect), Integrated Reporting is unable to mediate the influence of Intellectual Capital and Accounting Information Quality on Company Value. Companies that are members of LQ45 and are able to utilize resources, especially intellectual capital, tend to have higher competitive advantages and increase market value. The results of this research can be a reference for company management regarding the importance of intellectual capital in influencing company value.