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DOI 10.35609/afr.2021.6.3(2)

Reference to this paper should be referred to as follows: Dewi, R.R; Murwaningsari, E; Mayangsari, S. (2021). Green Intellectual Capital on Value Relevance in Indonesia's Manufacturing Companies, Acc. Fin. Review, 6(3), 120 – 136. https://doi.org/10.35609/afr.2021.6.3(2)

Received: October 09, 2021 | Accepted: December 31, 2021

Green Intellectual Capital on Value Relevance in Indonesia's Manufacturing Companies
R. Rosiyana Dewi, Etty Murwaningsari, Sekar Mayangsari
Universityof Trisakti, Jakarta, Indonesia Abstract

Objective - Corporate concern for the environment is an important stakeholder demand. A company is obliged to preserve the environment with various investments, one of which is green intellectual capital to maintain the sustainability of the company, especially for companies that carry out their business activities in countries that are in conditions of high pollution such as Indonesia. The importance of green intellectual capital investment information for stakeholders can be seen from the value relevance of the information. This study aims to examine and analyze the effect of investment in green intellectual capital, which consists of the following dimensions: human, structural, and relation to value relevance.

Methodology/Technique - This study will explain the causal relationship between the independent and the dependent variables through hypothesis testing based on the theorythat has been formulated with data that obtained and tested through quantitative panel data testing.

Findings - The results of a survey of 515 samples of data from a population of 183 manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2015-2019 found that green intellectual capital with its three dimensions had a significant positive effect on value relevance. This study also proves that green structural intellectual capital has influenced more on value relevance than human and relation intellectual capital.

Novelty - The measurement of variablesis green intellectual capital and value relevance in this study develops previous research with related government conditions and regulations in Indonesia. Green intellectual capital investment is measured by using content analysis from disclosures in annual reports and sustainability reports, and value relevance is measured by the Olhson model with beta correction by the stock market in Indonesia.

Type of Paper - Empirical.

Keywords: Green Intellectual Capital; Value relevance; Human Capital; Structural Capital, Relational Capital.

JEL Classification: G32, O34.

URI: http://gatrenterprise.com/GATRJournals/AFR/vol6.3_2.html

DOI: https://doi.org/10.35609/afr.2021.6.3(2)

Pages 120 – 136

Price: USD 25