Unlocking Financial Performance : The Role of Intellectual Capital and Leverage

Abstract

This study aims to examine the impact of intellectual capital and leverage on Return on Assets (ROA) for non-cyclical consumer sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. The study is grounded in Resource-Based Theory (RBT), which emphasizes the crucial role of both tangible and intangible resources in determining corporate performance. A quantitative research method was employed, utilizing secondary data derived from financial statements. Analysis was conducted using descriptive statistics, classical assumption tests, correlation analysis, and multiple linear regression. The results indicate that intellectual capital has a significant negative effect on ROA; this implies that higher investment in intangible assets tends to lead to a decline in ROA if implementation is suboptimal. Meanwhile, leverage has a significant positive effect on ROA, although its contribution is relatively small compared to that of intellectual capital. Collectively, intellectual capital and leverage significantly influence ROA, with a coefficient of determination (R²) of 61.30%, indicating that nearly all variation in ROA can be explained by these two independent variables. These findings underscore the importance of effectively managing intellectual capital and appropriately utilizing leverage to support the achievement of sustainable financial performance.