Intellectual Capital Influence on Firm Value: Does Financial Health Performance Have Mediating effect? (Evidence from Manufacturing Companies in Indonesia)

The aim of this study is to determine the relationship between Intellectual Capital, Financial Health Performance, and Firm Value. This research analyzed 132 manufacturing companies listed on the Indonesian stock exchange over five years (2016–2020), with data sourced from corporate annual and financial reports. Regression analysis tested direct relationships, while path analysis with the Sobel test assessed mediation effects. The findings indicate that both intellectual capital and financial health performance significantly affect firm value directly; however, financial health performance does not show a significant mediation effect between intellectual capital and firm value. The results suggest that market participants consider information related to intellectual capital and financial health performance in their valuations, yet financial health performance does not reflect intellectual capital's capability to generate financial health. This study highlights the importance of intellectual capital and financial health performance for market participants.