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Does intellectual capital have any influence on stock price crash risk?

Agung Nur Probohudono (Economic and Business, Fakultas Ekonomi, Universitas Sebelas Maret, Surakarta, Indonesia)
Adelia Dyaning Pratiwi (Economic and Business, Fakultas Ekonomi, Universitas Sebelas Maret, Surakarta, Indonesia)
Mahameru Rosy Rochmatullah (Economic and Business, Universitas Muhammadiyah Surakarta, Surakarta, Indonesia)

Journal of Intellectual Capital

ISSN: 1469-1930

Article publication date: 14 June 2021

Issue publication date: 27 September 2022

411

Abstract

Purpose

This paper explores the influence between intellectual capital (IC) and the risk of stock price crashes by using company performance as an intervening variable.

Design/methodology/approach

This study empirically analyzes the impact of the efficiency of IC on stock price crash risk using a sample size of 152 companies listed on the Indonesia Stock Exchange (IDX) during 2018. To test the research hypotheses, regression analysis and path analysis were applied. In addition, the researchers added exploration to several studies to strengthen the results of this study.

Findings

This study’s findings indicate that investors' optimistic (pessimistic) sentiment regarding stock price volatility has obscured aspects of the financial performance of listed companies. This finding implies that investor sentiment has dominated influence on stock price crash risk so that the aspects of IC are obscured.

Originality/value

This research provides new information that IC disclosure in the stock market needs to include knowledge of the volatility of stock prices in order to reveal stock price crash risk.

Keywords

Citation

Probohudono, A.N., Pratiwi, A.D. and Rochmatullah, M.R. (2022), "Does intellectual capital have any influence on stock price crash risk?", Journal of Intellectual Capital, Vol. 23 No. 6, pp. 1161-1174. https://doi.org/10.1108/JIC-09-2020-0306

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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