EFFECT OF CORPORATE GOVERNANCE AND BARRIERS TO ENTRY ON FINANCIAL PERFORMANCE WITH INTELLECTUAL CAPITAL AS MEDIATING VARIABLE
Noorlailie Soewarno , Bambang Tjahjadi and Rara Dzikrina Istiqomah

Universitas Airlangga

Abstract

The objective of this research is to test empirically the mediating effect on the relationship of corporate governance and barriers to entry towards financial performance with the presence of intellectual capital as mediating variable. This study was conducted with secondary data which is the financial statements of mining sector companies in the period of 2013-2015 and obtained total of 93 sample. The hypotheses of this study were analyzed using partial least square with WarpPLS 5.0 software. The results showed that corporate governance has direct significant negative influence toward financial performance. Barriers to entry also showed direct significant negative effect on financial performance. Researcher prove the role of intellectual capital as a partial mediator on the relationship of corporate governance and barriers to entry towards financial performance.

Keywords: corporate governance, barriers to entry, financial performance, intellectual capital

Topic: Financial Management and Accounting