Research Paper
Year: 2021 | Month: March | Volume: 8 | Issue: 3 | Pages: 309-314
Effect of Value Added Human Capital, Disclosure of Corporate Social Responsibility, Intensity of Research and Development on Intrinsic Value of Companies with Profitability as an Intervening Variable in the Plantation Sector
Andi Satriono1, Iskandar Muda2, Rina Br Bukit2
1Postgraduate Students Department of Property and Valuation Management at Universitas Sumatera Utara, Indonesia
2Postgraduate Lecturer Department of Property and Valuation Management at Universitas Sumatera Utara, Indonesia
Corresponding Author: Andi Satriono
ABSTRACT
The theory of the firm states that the company's survival can be maintained by maximizing the company's wealth or value by obtaining maximum profit. Plantation companies are national industries which are strategic industries in the macro economy, regional economic development and poverty reduction. The plantation sector is one of the mainstays of generating foreign exchange for the non-oil and gas sector, which tends to continue to increase. Where the intrinsic value of this company is the net present value of the projection of free cash flow to firm (FCFF). This research was conducted to analyze the significant effect of value added human capital, disclosure of corporate social responsibility, intensity of research and development on intrinsic value of companies with profitability as an intervening variable in the plantation sector listed on the Indonesia Stock Exchange (IDX). This population was selected as a target population with a total of 5 sample companies with an observation period from 2010 to 2018. Hypothesis testing uses structural equation modeling data analysis techniques. The results of this study indicate that value added human capital has a positive and most significant effect on profitability. The disclosure of corporate social responsibility has a positive and significant effect on profitability. The intensity of research and development has a positive but insignificant effect on profitability. Value added human capital has a positive and most significant effect on the intrinsic value of companies, disclosure of corporate social responsibility has a positive and significant effect on intrinsic value of companies, intensity of research and development has a negative and significant effect on intrinsic value of companies, profitability has a positive and significant effect on intrinsic value of companies. Profitability is not able to mediate the relationship between value added human capital and intrinsic value of companies, profitability is not able to mediate the relationship between disclosure of corporate social responsibility and intrinsic value of companies and profitability is not able to mediate the relationship between research and development intensity and intrinsic value of companies.
Keywords: HValue Added Human Capital, Disclosure of Corporate Social Responsibility, Intensity of Research and Development, Profitability, Intrinsic Value of Companies.
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