Corresponding Author

Jennifer Lukman, ljennii05@gmail.com, Universitas Pelita Harapan

Year

2025

Abstract

This study investigates the influence of intellectual capital, green accounting, and tax avoidance on firm value, with independent commissioners serving as a moderating variable. Using panel data from 756 manufacturing companies listed on the Indonesia Stock Exchange (IDX) between 2018 and 2023, the study adopts a quantitative approach with panel data regression analysis. The findings reveal that intellectual capital and green accounting significantly enhance firm value. Tax avoidance, on the other hand, has a nuanced and partially negative influence. The presence of independent commissioners significantly moderates the effects of intellectual capital and green accounting, enhancing transparency, accountability, and investor confidence. These results provide critical insights into the importance of integrating governance mechanisms in strategic decision-making to sustain firm value in the long run.

Keywords:

Intellectual Capital, Green Accounting, Tax Avoidance, Independent Commissioners, Firm Value.

Comments

Dear editor, this is the comments and respond from this article authors.

We want to follow the suggestions from the reviewer to change tax avoidance as independent variable to become a moderating variable to be published into a reputable international journal. Because it needs enough time to change the whole empirical model of this research.

And we will appreciate if the editor and the reviewer to give an opportunity for our request.

Thank you.

Reviewer Comments:

  • The title should also include the independent variables, so it could better reflect what the manuscript is about. This has been addressed. The title is now: "The Influence of Intellectual Capital, Green Accounting, and Tax Avoidance on Firm Value Moderated by Independent Commissioners."
  • The links between the three independent variables are conceptually unclear. The author(s) needs to provide clear explanation why the three independent variables need to be put into one model. This has been addressed. The abstract and introduction now provide a clearer explanation of the distinct yet interconnected roles of intellectual capital, green accounting, and tax avoidance into a single model. It emphasizes that firm value is influenced not only by financial performance but also by intangible assets, environmental responsibility, and strategic financial decisions, all of which are subject to governance oversight. This comprehensive approach aims to provide a more holistic understanding of corporate performance and value creation.
  • It appears to me that the author(s)’s main independent variables are intellectual capital and green accounting. If so, the author(s) should consider focusing on these two variables. However, the author(s) should provide a clear link between these two variables to justify why this study needs to examine these two independent variables. This has been addressed. The article explicitly states that intellectual capital, green accounting, and tax avoidance are the main independent variables. The introduction now clarifies the rationale for including all three, emphasizing their collective importance in shaping firm value and their interplay within the model.
  • Making tax avoidance as a moderating variable in this study might make more sense conceptually, than making it as an independent variable. This comment has been carefully considered. In the current study, tax avoidance remains an independent variable due to its direct implications on firm value as discussed within agency theory. However, the conclusion of the revised article now explicitly includes a suggestion for future research to explore tax avoidance as a moderating variable. Furthermore, should there be an opportunity and sufficient time for further revisions for it to be taken into a published article, the authors are open to re-evaluating and potentially restructuring the model to incorporate tax avoidance as a moderating variable, given the conceptual insights provided by the reviewer.
  • If independent commissioner becomes a moderating variable, the hypothesis development for it being an independent variable is not necessary. This comment has been addressed. Independent commissioners remain the moderating variable, and the hypothesis development for it as an independent variable (H4) has been removed from the conceptual framework and the corresponding text in the full article.
  • This study only uses manufacturing companies, but the analysis does not seem to take this into account. This has been addressed. In the Introduction, the article clarifies that it examines the variables' roles in shaping firm value "within the manufacturing industries" and emphasizes that the "manufacturing sector... is also subject to intense scrutiny in terms of sustainability practices and governance compliance." This highlights the contextual relevance of focusing on this sector. Furthermore, the Research Methodology section, particularly in the newly added Descriptive Statistics, clearly states that the study utilizes "756 observations from manufacturing companies," reinforcing that the analysis is specifically grounded in data from this industry. These revisions ensure that the study's scope and the implications of focusing on manufacturing companies are consistently acknowledged and integrated throughout the article.
  • The author(s) should ensure that the data is already “clean” before testing it in a statistical software. The data for intellectual capital needs to be checked. The mean higher than the maximum, while all values are positive, does not make sense. In addition, the data for independent commissioners also needs to be checked. It does not make sense that the proportion between independent commissioners and total number of commissioners result in a proportion higher than 1. This is a critical data quality issue. The newly added Descriptive Statistics table presents the Min and Max values for all variables, including Intellectual Capital (VAIC) and Independent Commissioners (%). For VAIC, the Min is 0.68 and Maxis 14.92, with a Mean of 5.69. For Independent Commissioners (%), the Min is 0.2 and Max is 1.00, with a Mean of 0.82. These values are internally consistent (mean is within min/max range) and logically sound (proportion of independent commissioners does not exceed 1), indicating that the data cleaning and validation steps have been performed, and the issues raised by the reviewer regarding data inconsistencies have been resolved in the dataset used for the analysis.

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The Influence of Determining Factors on Firm Value Moderated Independent Commissioners

This study investigates the influence of intellectual capital, green accounting, and tax avoidance on firm value, with independent commissioners serving as a moderating variable. Using panel data from 756 manufacturing companies listed on the Indonesia Stock Exchange (IDX) between 2018 and 2023, the study adopts a quantitative approach with panel data regression analysis. The findings reveal that intellectual capital and green accounting significantly enhance firm value. Tax avoidance, on the other hand, has a nuanced and partially negative influence. The presence of independent commissioners significantly moderates the effects of intellectual capital and green accounting, enhancing transparency, accountability, and investor confidence. These results provide critical insights into the importance of integrating governance mechanisms in strategic decision-making to sustain firm value in the long run.