Effects of intellectual capital and ownership structure on financial outcomes and distribution dynamics in Indonesian State-Owned Enterprises (SOEs)

Abstract

This study investigates the impact of intellectual capital disclosure and
the distribution of its components. Components of intellectual capital in
this study include human capital, structured capital, correlated capital, and
employed capital skills. This study examines the impact of intellectual capital
and structural ownership on financial performance, measuring financial
performance using asset returns. The study investigated the distributive
effects of intellectual capital by analyzing panel data from Indonesia’s state
owned enterprises (SOEs) over the five years from 2018 to 2022. A modified
intellectual capital value-added coefficient model is applied to examine the
distributive effects of intellectual capital (IC) skills on financial performance.
Empirical findings indicate that IC competence, human capital efficiency,
structured capital efficiency, employed capital efficiency, and relational capital
skills are positively and significantly related to financial performance in the
distribution. However, the distribution of physical and structural capital is
the most important component of profit-generating intellectual capital skills.
The distribution of public and foreign ownership positively affects financial
performance. This research will help managers, policymakers, and investors
decide how the distribution of IC investments enhances performance and makes
informed investment decisions in public and foreign-owned companies.