Corporate Governance, Intellectual Capital and Firm Performance

This paper investigates the impact of corporate governance and intellectual capital on firm performance in Indonesian-listed firms. Using a balanced-panel of 120 Indonesian-listed firms, this study employs a balanced panel method, using non linier IV 2SLS and non linier IV-GMM. All variables, apart from commissioners, directors, education and capital employed efficiency exhibit a non significant impact on Tobins’Q, while all variables are statistically non significant for ROA. The findings are less conclusive than that of previous studies in developed countries. This study provides recent evidence for the corporate governance and intellectual capital in affecting firm peformance of listed-firms in Indonesian Stock Exchange. Though most listed-firms in Indonesia is owned by group or family, the appointment should be strictly complied to the regulations set, as current evidence indicates that independent commissioners and directors have no impact on firm performance, hence an awareness of good corporate governance conduct should be massively disseminated.