Syari Octavia, Ahmad Fauzan Fathoni, Yulia Efni


Manufacturing industry is the industry that the largest contribution to GDP growth until 2017. Although still the largest source of the increase in GDP, the contribution of manufacturing to GDP continued to decline since 2015. However, this does not cause the stock price decline of manufacturing. Based on this phenomenon, this study aims to examine the internal factors are thought to be able to increase the value of the company. The population in this study are all manufacturing companies listed in Indonesia Stock Exchange in 2013-2017 as many as 144 companies with a total sample of 76 companies that obtained by purposive sampling. Then, samples were analyzed using Structural Equation Modeling results show that IC and capital structure does not directly affect the value of the company. But IC and capital structure directly affects financial performance. Thus, the financial performance is able to mediate the effects of IC and capital structure to the company's value. The better the financial performance of a company, the better is also the company's value in the eyes of investors.

Keywords: Intellectual Capital, Capital Structure, Financial Performance, Company Value

Full Text:



Acemoglu, D., Autor, D., Hanson, G. H., & Price, B. (2014). Import Competition and the Great US Employment Sag of the 2000s. Journal of Labor Economics, 34(1), 141–198.

Alcalá, F., & Ciccone, A. (2004). Trade and Productivity. The Quarterly Journal of Economics, 119(2), 613–646.

Amann, E., Lau, B., & Nixson, F. (2009). Did China Hurt the Textiles and Clothing Exports of Other Asian Economies, 1990 – 2005 ? Oxford Development Studies ISSN:, 37(4), 333–362.

Athukorala, P. (2009). The Rise of China and East Asian Export Performance : Is the Crowding-Out Fear Warranted ? The World Economy.

Autor, D. H., Hanson, G. H., & Dorn, D. (2013). The China Syndrome: Local Labor Market Effects of Import Competition in the United States. American Economic Review, 103(6), 2121–2168.

Baldwin, R., & Lopez-gonzalez, J. (2015). Supply-chain Trade : A Portrait of Global Patterns and Several Testable Hypotheses. The World Economy, (October 2012), 1682–1721.

Bernard, A. B., Jensen, J. B., & Schott, P. K. (2006). Survival of the best fit: Exposure to low-wage countries and the ( uneven ) growth of U.S. manufacturing plants. Journal of International Economics, 68, 219–237.

Chernozhukov, V., & Hong, H. (2003). An MCMC approach to classical estimation. Journal of Econometrics, 115, 293–346.

Corden, W. M., & Neary, J. P. (1982). Booming Sector and De-Industrialisation in a Small Open Economy. The Economic Journal, 92(368), 825–848.

Dauth, W., Findeisen, S., & Suedekum, J. (2014). The Rise of the East and the Far East: German Labor Markets and Trade Integration. Journal of the European Economic Association, 12(6), 1643–1675.

Donoso, V., Martín, V., Minondo, A., Economía, D. De, Ii, A., Madrid, U. C. De, & Somosaguas, C. De. (2015). Do Differences in the Exposure to Chinese Imports Lead to Differences in Local Labour Market Outcomes ? An Analysis for Spanish Provinces. Regional Studies, 49(10), 1746–1764.

Fan, L. (1972). The Economy and Foreign Trade of China. Law and Contemporary Problems, 76(1), 3/4.

Federico, S. (2014). Industry Dynamics and Competition from Low-Wage Countries : Evidence on Italy. Oxford Bulletin of Economics and Statistics, 76(3 (2014)), 0305-9049.

Feenstra, R. C., & Sasahara, A. (2018). The ‘China shock’ in trade: consequences for ASEAN and East Asia. In L. Y. Ing & M. Yu (Eds.), World Trade Evolution Growth, Productivity and Employment (pp. 398–434). Routledge-ERIA Studies in Development Economics.

Frankel, J. A., & Romer, D. (1999). Does Trade Cause Growth? American Economic Review, 89(3), 379–399.

Fu, X., Kaplinsky, R., & Zhang, J. (2009). The impact of China’s exports on global manufactures prices Other. SLPTMD Working Paper Series.

Giovannetti, G., & Sanfilippo, M. (2009). Do Chinese Exports Crowd-Out African Goods ? An econometric analysis by country and sector. European Journal of Development Research, 21, 506–530.

Hanson, G. H. (2012). The Rise of Middle Kingdoms : Emerging Economies in Global Trade. Journal of Economic Perspectives, 26(2), 41–64.

Ho, S. P. S. (1980). The China Trade : Recent Developments and Future Prospects. Pacific Affairs, 53(2), 269–289.

Iacovone, L., Rauch, F., & Winters, L. A. (2013). Trade as an engine of creative destruction : Mexican experience with Chinese competition. Journal of International Economics, 89(2), 379–392.

Jenkins, R., Peters, E. D., & Moreira, M. M. (2008). The Impact of China on Latin America and the Caribbean. World Development, 36(2), 235–253.

Kaplinsky, R. (2006). Revisiting the Revisited Terms of Trade : Will China Make a Difference ? World Development, 34(6), 981–995.

Kelley, A. C. (1973). Population Growth, the Dependency Rate, and the Pace of Economic Development. Population Studies, 27(3), 405–414.

Mayer, J., & Fajarnes, P. (2008). Tripling Africa ’ s Primary Exports : What, How, Where ? The Journal of Development Studies, 44(1), 80–102.

Pierce, B. J. R., & Schott, P. K. (2016). The Surprisingly Swift Decline of US Manufacturing Employment. American Economic Review, 106(7), 1632–1662.

Powell, D. (2019). Estimation of quantile treatment effects in the presence of covariates. RAND Corporation Publication Depart.

Reed, W. R. (2015). On the Practice of Lagging Variables to Avoid Simultaneity. Oxford Bulletin of Economics and Statistics, 6(2015), 0305-9049.

Rodrik, D. (2006). What’ s So Special about China ’ s Exports ? China & World Economy, 14(5), 1–19.

Rodrik, D. (2016). Premature deindustrialization. Journal of Economic Growth, 21(1), 1–33.

Rose, A. K. (2006). Size Really doesn’t Matter: In Search of a National Scale Effect. NBER Working Paper Series, (April).

Srinivasan, T. N. (1986). The Costs and Benefits of Being a Small, Remote, Island, Landlocked, or Ministate Economy. The World Bank Research Observer, 1(2), 205–218.

Sturgeon, T. J. (2010). Mapping Global Value Chains: Intermediate Goods Trade and Structual Change in the World Economy. United Nations Industrial Development Organization, 05(2010).

Svejnar, J. (2002). Transition Economies : Performance and Challenges. Journal of Economic Perspectives, 16(1), 3–28.

Wood, A., & Mayer, J. (2010). Has China de-industrialised other developing countries ? QEH Working Paper Series, (175), 1–32.



  • There are currently no refbacks.