INTELLECTUAL CAPITAL AND CAPITAL STRUCTURE ON BUSINESS PERFORMANCE : THE MODERATING ROLE OF GOOD CORPORATE GOVERNANCE

Abstract

Food and beverage sub-sector companies in Indonesia face challenges in maintaining business performance amid increasing competition, rising production costs, and unstable economic conditions. Business performance measured using Return on Equity (ROE) experienced fluctuations and tended to decline during the 2021–2024 period. In addition, the effectiveness of intellectual capital management and capital structure policies is considered important in supporting company performance sustainability. Good Corporate Governance (GCG) is also believed to strengthen company management effectiveness and improve stakeholder trust. This study aims to analyze the effect of intellectual capital and capital structure on business performance with Good Corporate Governance as a moderating variable. This study uses a quantitative approach with associative research type. The data used are secondary data obtained from annual reports and financial statements of food and beverage sub-sector companies listed on the Indonesia Stock Exchange during the 2021–2024 period. The sampling technique used purposive sampling. Data analysis was conducted using panel data regression and Moderated Regression Analysis (MRA) through EViews 10 software. The results show that intellectual capital and capital structure do not significantly affect business performance. Furthermore, Good Corporate Governance is unable to moderate the relationship between intellectual capital and business performance as well as the relationship between capital structure and business performance. These findings indicate that the implementation of intellectual capital management, capital structure policy, and corporate governance has not been fully effective in improving company performance. Companies are advised to optimize internal resource management, improve operational efficiency, maintain balanced financing policies, and strengthen the implementation of corporate governance to improve business performance sustainably.