INTELLECTUAL CAPITAL AND RETURN ON INVESTMENT: IN MINING COMPANIES

This study investigated the relationship between intellectual capital and its effect on financial performance as measured by return on investment (ROI) using data from mining companies listed in the Indonesia Stock Exchange (IDX), researchers using financial statement data for the period 2011-2015. In this research, the measurement model Intellectual Capital use Pulic’s model, with the method of measurement is Value Added Intellectual Coefficient (VAIC), which are a component of Value Added Capital Employed (VACA), Value Added Human Capital (VAHU) and Structural Capital Value Added (STVA). The analysis used was multiple linear regression. The results of the hypothesis test showed that VACA, VAHU and STVA together significantly effect to ROI. The results of t test showed, STVA and VACA significant effect to ROI, while variable VAHU no significant impact to ROI because it being economic downturn that led to the mining business become lethargic. Further research can add a number of samples or a longer period because the result of this research is limited only 6 mining companies into the samples, so that future studies can provide a more perfect. Suggested to reexamine variables during stable economic condition to prove the possibility result which different with this research