jai | Journal of Accounting and Investment Article Type: Research Paper The Intervening Role of Value Added Intellectual Capital on The Relationship between Corporate Governance and Firm Value Saarce Elsye Hatane*, Melinda Setiadi, Josua Tarigan, Devie Abstract: The purpose of this research is to analyze the direct impact of board structures on intellectual capital and firm value. The intellectual capital has a role as the mediating variable between corporate governance and firm value. Corporate governance is indicated by board size, gender diversity, and managerial ownership. Intellectual capital and firm value are measured by VAICTM and Tobin’s Q approximation respectively. Specifically, this study is conducted in the consumer goods sector during 2010-2015 in Indonesia and Malaysia. Total samples gathered from Indonesia Stock Exchange and Bursa Malaysia are 25 Indonesia companies (150 firm-year) and 106 Malaysia companies (636 firm- year). Partial least square is applied in order to examine the research model. The findings support all the proposed hypothesis, that corporate governance in both Indonesia and Malaysia have a positive significant impact on intellectual capital and value. In both countries, intellectual capital also has a positive significant impact. However, the main driver of significance on intellectual capital is different. Furthermore, intellectual capital in Malaysia is successfully intervening in the relationship between board structures and firm value. Keywords: Board Structure; Firm Value; Intellectual Capital; Managerial Ownership Introduction In the year of 2015, ASEAN was achieving a major milestone by the establishment of ASEAN Economic Community (AEC) that promotes free movement of goods, services, investments, skilled labor, and the free flow of capital (ASEAN, 2017). Every company in ASEAN has to prepare themselves to be ready in facing the new economic culture. From the economic perspective, corporate governance is crucial in achieving an efficiency of the movement scarce funds to investment project with the highest return (Zabri, Ahmad, & Wah, 2016). The researchers generally categorize corporate governance into two mechanisms; internal mechanism and external mechanism (Filatotchev & Nakajima, 2010; Zabri et al., 2016;). AFFILIATION: Accounting Department, Universitas Kristen Petra, Surabaya, Indonesia *CORRESPONDENCE: elsyehat@petra.ac.id THIS ARTICLE IS AVALILABLE IN: http://journal.umy.ac.id/index.php/ai DOI: 10.18196/jai.2003125 CITATION: Hatane, S.E., Setiadi, M., & Tarigan, J. (2019). The Intervening Role of Value Added Intellectual Capital on The Relationship between Corporate Governance and Firm Value. Journal of Accounting and Investment, 20(3), 213-235. ARTICLE HISTORY Received: 20 December 2018 Reviewed: 2 January 2019 Revised: 17 September 2019 Accepted: 23 September 2019