European Journal of Molecular & Clinical Medicine ISSN 2515-8260 Volume 7, Issue 2, 2020 5320 Corporate Governance And Firm Value: The Mediating Role Of Intellectual Capital Disclosure In Indonesian Manufacturing Firms Radhi Abdul Halim Rachmat 1 , Disman 2 , Nugraha 3 , Ikaputera Waspada 4 1,2,3,4 Universitas Pendidikan Indonesia, Bandung, Indonesia Abstract - The objective of this study is to examine the relationship between corporate governance (managerial ownership and institutional ownership) and firm value with intellectual capital disclosure as a mediating variable for a panel sample of 358 manufacturing firms in Indonesia during 2016-2018. We found that corporate governance is associated with intellectual capital disclosure and firm value. Intellectual capital disclosure has a positive effect on firm value. Splitting the firms into small and large firm subsamples, we observe some influence of corporate governance on intellectual capital disclosure and firm value. Furthermore, intellectual capital disclosure mediates the effect of some corporate governance on firm value for the large firms. Keywords: corporate governance, firm value, institutional ownership, intellectual capital disclosure, managerial ownership 1. INTRODUCTION The purpose of this study is to find out whether intellectual capital mediates corporate governance (managerial and institutional ownership) on firm value. Various studies have examined the direct effect of this corporate governance on firm value(Ararat, Black, and Yurtoglu 2017; Connelly et al. 2017; Husaini 2017; Li and Zaiats 2018, 2017; Zargar and Sheikh 2018), also the effect of corporate governance on intellectual capital disclosure (Al- Musali and Ismail 2015; Appuhami and Bhuyan 2015; Baldini and Liberatore 2016; Bhattacharjee, Chakraborty, and Bhattacharjee 2017; Yan 2017), and the effect of intellectual capital disclosure on firm value (Berzkalne and Zelgalve 2014; Chen, Cheng, and Hwang 2005; Li and Zhao 2018; Nuryaman 2015). To answer the question of whether intellectual capital disclosure mediates the effect of corporate governance on firm value is important for several reasons. First, corporate governance may not have a direct effect on firm value. If corporate governance does not have a direct effect on firm value, then we will include a mediating effect namely intellectual capital disclosure in firm value to explain the mixed results regarding the effect of corporate governance on firm value. Second, by seeing intellectual capital disclosure as one of the potential mediators, we can have a better understanding of how corporate governance influences firm value. Third, the application of good corporate governance can increase the knowledge assets in the company, which can be seen from intellectual capital disclosure, increasing the company’s knowledge assets. The disclosure can increase the value of the company in minimizing asymmetric information.