ANALYSIS OF THE EFFECT OF INTELLECTUAL CAPITAL ON COMPANY PERFORMANCE WITH RISK MANAGEMENT AS A MODERATING VARIABLE

Abstract

This study was conducted with the aim of analyzing the effect of intellectual capital on company performance, especially in the banking industry with risk management as a moderation. Intellectual capital itself includes knowledge, skills, and innovation that are expected to improve company performance. This improvement can be done through improving the operational systems or product or service innovations offered by the company. However, along with technological developments, risk management becomes important to manage potential risks that can arise and affect company performance. This study was conducted using secondary data in the form of annual reports and financial reports of banks listed on the Indonesia Stock Exchange (IDX) during the 2019-2023 period. This analysis was conducted using multiple regression to see the relationship between intellectual capital and company performance, as well as the role of risk management in moderating intellectual capital. The results of this study indicate that the intellectual capital variable and the moderating role of risk management have a significant influence on financial performance empirically.