Volume 8, Issue 6, June – 2023 International Journal of Innovative Science and Research Technology ISSN No:-2456-2165 IJISRT23JUN1166 www.ijisrt.com 637 The Influence of Intellectual Capital Disclosure and Capital Structure on Firm Value in Indonesian’s State-Owned Company Raden Roro Dhiya Auliana Soesetio, Budi Santoso, Embun Suryani Magister of Management, Faculty of Economics and Business University of Mataram Mataram, Indonesia Abstract:- The aim of this study is to analyze the influence of intellectual capital disclosure and capital structure on firm value in state-owned enterprises listed on the IDX from 2018 to 2021. The whole sampling approach was employed for sample selection in this study, which is a sampling strategy in which all members of the population are utilized as samples, yielding a total of 26 firms. Panel data regression using the EViews tool was utilized for data analysis. According to the findings, intellectual capital disclosure had a positive and significant effect on firm value. While capital structure had no significant negative effect on firm value. Managerial implications that provide input to managers of BUMN companies that are not listed on the IDX so that they can compare the good source and resource asset management in BUMN companies that have gone public, allowing them to influence and even increase the company's value in the future in a sustainable manner. Keywords:- Intellectual Capital Disclosure, Capital Structure, Firm Value. I. INTRODUCTION State-owned enterprises (BUMN) are companies that are wholly, mostly or partially owned by the government and the government gives control over them. Since June 2022, there have been 91 SOEs in Indonesia including 79 Persero and 12 Perums spread across 12 industrial sectors, and 26 state- owned companies have traded their shares on the Indonesia Stock Exchange (IDX). Investors are more interested and confident in participating in these businesses after seeing BUMN enterprises where virtually every element is handled by the government. With high investor confidence in state- owned companies that have been included in the IDX list, these companies get a higher value compared to other companies. Firm value plays an important role for the company because company value is the main reference for investors to manage their funds in a stock because the higher the value, the higher the share price. Firm value is the value given by the market for shares owned by companies that have gone public, if they have not gone public, then firm value is the value that occurs when the company is sold. Azizah (2015). So that companies that trade their shares will get a valuation in the form of company value. Improved performance in the operational and financial fields has a significant impact on share prices and can increase the value of the company as a whole on the Indonesia Stock Exchange. An investor in assessing a company is not enough only with information that is financial in nature, therefore an investor also needs non-financial information to be considered as investment material. Other non-financial factors that affect company value are shown by the research results of (Pamungkas & Maryati, 2017), and (Ardianto & Rivandi, 2018) empirically proving that disclosure of intellectual capital Disclosure has a positive effect on firm value. In addition, the factor that affects the value of the company financially to be used as information for investors is the capital structure. The results of research conducted by Hasbi, (2015), concluded that capital structure has a close relationship and has a positive impact on firm value. In addition, research conducted by (M, 2019), and Martha & Afdella, (2022) also concluded that capital structure has a positive and significant effect on company value. Intellectual capital (IC) is a method used to value and measure knowledge assets. The presence of substantial tangible assets as well as intangible assets like information systems, innovation, organizational management, and organizational resources demonstrates the company's ability to compete. Intellectual capital refers to all of the company's control over the business, including customer relationships, employee relationships, and auxiliary processes created through innovation, knowledge modification, knowledge transfer, and ongoing learning to increase corporate value (Gozali & Hatane, 2014). Intellectual Capital Disclosure is proxied by dividing the amount disclosed by the amount that should be disclosed by a company. The results of research by (Devi et al., 2017), (Yulinda et al., 2020), (Fadilah & Afriyenti, 2020), and (Halim, 2021) show that intellectual capital has an effect on firm value and has a positive effect but is inversely proportional to the research results (Candra & Wiratmaja, 2020) intellectual capital has no effect on company value. There are differences in the results of previous studies which mean that intellectual capital cannot be said to have an effect on firm value.