The Impact of Intellectual Capital on Company Value with Profitability as a Mediator

: This study aims to determine the effect of intellectual capital on firm value with profitability as a mediator in the food and beverage sub-sector. This study is quantitative empirical research using hypothesis research that examines the significant influence and direction of the direct and indirect relationship between the independent variables and the dependent variable through the intermediate variable. The total research sample is 14 companies. The sampling technique used in this research was purposive sampling. The data used is panel data. The data analysis method uses path analysis with the help of Eviews software. Partial test results show that intellectual capital has a positive and significant effect on firm value and profitability. The Sobel test results show that profitability cannot mediate the effect of intellectual capital on firm value.

Companies with high profitability receive positive investor reactions, as evidenced by the increasing number of investors who invest in the company's shares by buying them.Thus, share prices will also rise so that profitability becomes one of the factors that influence company value.Sutama & Lisa, (2018);Sari, (2020);Markonah et al., (2020); Yohana et al. (2021)states that profitability has a positive impact on company value, however, based on a literature survey, profitability is also influenced by intellectual capital.In short, profitability can mediate the influence of intellectual capital, audit committee and institutional ownership on company value.
This research has several practical contributions.First, for company managers, the results of this research can be used as evaluation material, strategies and suggestions for increasing company value and offering solutions for companies in the food and beverage sub-sector to achieve success through achieving competitive advantage.Second, for investors, this research can be used as material for their consideration in making decisions to maintain and withdraw their investment by considering various factors.

THEORETICAL BASE Resource-Based View (RBV) Theory
RBV theory suggests that company resources and capabilities are essential for the company, because they represent the main elements or foundations of the company's competitiveness and performance.According to the Resource-Based View (RBV) theory, company resources are resources that have unique value and are able to provide diverse and productive services.If a company can make full use of its resources, and is able to compete with its competitors(Grace, 2020).

Signaling Theory
Signaling theory sees that company managers have more information about the company and are encouraged to communicate this information to potential investors so that the company's share price increases (Adam et al., 2018).According to Brigham & Houston (2014) signaling theory explains management's actions in providing guidance to investors regarding management's views on the company's prospects.

The value of the company
Company value is an investor's reaction to the level of success of a company and is often linked to share prices (Nugraha et al., 2021).The market price of a company's shares that is formed between buyers and sellers in a transaction is called the company's market value because it is considered to reflect the true value of the company.

Intellectual Capital
The International Federation of Accountants (1998) defines IC as intellectual property, intellectual assets, and knowledge assets which can be interpreted as capital based on the knowledge owned by the company.Intellectual capital (IC) is an intangible asset that is not reported on the balance sheet but has a positive impact on the company's performance and success.(Mondal & Ghosh, 2012).

Profitability
Profitability is defined as the net profit obtained from policies and decisions in a company (Brigham & Houston, 2011).Profitability can be seen in a ratio, this indicator represents a measure of the effectiveness of a company's management and is reflected in the profits generated from sales or investment income (Zuhroh, 2019).

RESEARCH METHODS
This type of research is quantitative research testing the significant influence and direct linear and indirect linear direction between the independent variable and the dependent variable.In this research, the independent variable in the form of intellectual capital was tested for the influence and direction of its relationship with the dependent variable, namely company value, directly and indirectly through the intervening variable, namely profitability.The research uses secondary data taken based on annual reports and financial reports of food and beverage sub-sector companies listed on the IDX throughout the time of the research.The research time is set for 11 years, namely 2012 to 2022.This research utilizes a data review system with the Eviews application.This research uses a sample of food and beverage sub-sector companies listed on the IDX in 2012-2022 using a purposive sampling method where from a population of 45 companies, 14 companies were selected that matched the predetermined criteria.The following are several criteria that have been determined in sampling: 1. Food and beverage sub-sector companies are on the IDX from 1 January 2012 to 31 December 2022.
2. Food and beverage sub-sector companies have published annual reports and financial reports (audited) for the period 2012 to 2022. 3. Food and beverage sub-sector companies that submit information regarding sustainability reports in published annual reports.The operationalization of the variables in this research is as follows:

Table 2. Variable Operationalization Variable Definition Measurement Scale
The value of the company Company value is an investor's reaction to an entity, which is often linked to the market performance of an entity (Nuryaman, 2015).

Price to Book
Value= harga saham nilai buku per lembar saham

Intellectual Capital
Intellectual capitalnamely ownership of knowledge and experience, special skills and knowledge, technical abilities, good relationships that can be utilized to create competitive advantages which can further increase company value.From the statistical calculations shown in Table 4, the results of the equation are as follows: NP = α + β1IC + β2PROF+ e = 1445.166+ 0.150282 IC + 0.053544 PROF + e For the results of the sobel test mediation test, profitability as an intervening variable can be seen in Table 5.
value, in 2018 it was 1.172, decreasing in 2019 and 2020, namely 0.54 and 0.642.In 2021, 2022 the PBV value will be 0.646 and 0.57.The PBV value, which reflects the value of an entity in the food and beverage sub-sector, fluctuates and tends to decrease, if left unchecked, it results in a decline in the level of confidence of investors and potential investors in a company's shares and, more fatally, results in the company's difficulty in obtaining external funding, which in the long term results in the entity will experience financial difficulties.Based on a literature survey conducted, there is a strong suspicion that intellectual capital has an impact on company value.Doan (2020);Salvi et al. (2020);Ozkan et al., (2017)found that intellectual capital has a positive influence on company value.Investors realize that intellectual capital is an intangible asset that can increase a company's competitive advantage in international competition.Investors give higher value to companies that have better intellectual capital.Li & Zhao, (2018)AndAgustin et al. (2022)found that intellectual capital has no impact on company value.
indicator of an entity's management performance in managing assets as shown by the profits generated(Rahman et al.model in research is path analysis with model calculations formulated by model I and model II equations, namely: 1

ISSN: 2581-8341 Volume 07 Issue 08 August 2024 DOI: 10.47191/ijcsrr/V7-i8-38, Impact Factor: 7.943 IJCSRR @ 2024 www.ijcsrr.org 6261 * Corresponding Author: Mulia Saputra Volume 07 Issue 08 August 2024 Available at: www.ijcsrr.org Page No. 6258-6264
In this research, a path analysis test was carried out on model 1 and model 2, then a mediation test was carried out using a sobel test for the variables Intellectual capital (X1), Profitability (Z) and Company Value (Y).The results of hypothesis testing for model 1 and model 2 with Eviews are shown in the table below.

Table 3 .
Model I Next, the test results for model II are in Table4.