ISBN: 978-979-9234-49-0

ICEBM PROCEEDINGS 2 0 1 3 I e1. sJ

2°d International Conference on Entrepreneurship and Business Management

1 "Entrepreneurship & Business Sustainabilit) "

-- NOVEMBER 21-22 ,2013 Sanur, Ball,

-- Published by: UNIVERSITY , Indonesia 2013 International Conference on Entrepreneurship and Business Management \ll'\1:'4R 2 0 1 3 ICEBM

Proceeding of International Conference On Entrepreneurship And Business Management (ICEBM 2013)

NOVEMBER 21-22, 2013

ISBN: 978-979-9234-49-0

TARUMANAGARA UNIVERSITY JAKARTA, INDONESIA

i I ICEBM 2013 MESSAGE FROM THE GENERAL CHAIRMAN OF ICEBM 2013

Dear Colleagues,

On behalf of the JCEBM2013 organizing comminee, I am honored and delighted to welcome you to the International Conference on Entrepreneurship and Business Management (JCEBM 2013). This conference is a continuation of a previously organized conference, JCEBM 2012 at Tarumanagara University, Jakarta.

The annual ICEBM conference aims to provide a high level international forum for researcher, academician, and practitioners to present and discuss recent research findings, ideas and philosophies, and applications in the field of Entrepreneurship and Business Management. I am delighted to learn that for this year's conference, many delegates are in attendance from different countries, including Gennany, Finland, China, India, Australia, Philippines, Thailand, Malaysia, and Indonesia. Our technical program consists of 1 keynete speech, 2 plenary sessions with 4 high quality invited speakers, and 55 technical papers split in 3 parallel oral sessions.

The success of this conference is due to the effort of many people especially program chairs and organizing staffs which we gratefully acknowledge. We would like to thank the guest speakers, program chairs, organizing staffs, and conference participants for your sincere support and active participations.

I hope that you will find the conference and your stay in both valuable and enjoyable.

General Chairman ofICEBM 2013

Lina, ST., M.Kom., Ph.D

ii I ICEBM 2013 OPENING SPEECH FROM RECTOR OF TARUMANAGARA UNIVERSITY

Distinguished Guests, Ladies and Gentlemen,

I am delighted to have the opportunity to give a welcoming speech on this International conference where the issues of Entrepreneurship, Business Management, and Sustainability (ICEBM 2013) will be addressed. And I believe these issues are crucial and important not only for our future business development but also for our planet where we live.

I would like to express my appreciation to all parties who have worked hard and organized this event. And I also would like to welcome all participants of this conference and for those who come from abroad, welcome to this beautiful island of Bali. I hope your trip to this conference becomes a pleasaht trip.

The rapid development in technology particularly in the 21-st century has brought an impact in many aspects of human life. ln broad, the issues can be categorized in four aspects i.e., technical or economic aspects, social, cultural, and political aspects. When these aspects are developed in an integrated fashion, the optimum results may be achieved. But how is the development of these aspects?

In technical aspect, we can witness how the nations in the world are competing to develop a advanced network system and also how the information technology changes. The convergence in many aspects of future network is in front of us. Many people are facing a dilemma if they cannot keep up with the cutting edge of the technology they will be left behind by the technology and the community. On the other hand if they develop the network system by themselves big effort and investment have to be prepared. In order to minimize the cost and energy, the synergy and shared development cannot be avoided.

In recent years, the issues of sustainability of the world have become interesting topic. Many conferences on this issue have been conducted as an independent topic related to energy saving and global warming. Very a few papers discuss this issue along with the entrepreneurial and cultural issues. In reality, we live in this world with the same technology but with different climate and cultures.

And therefore, today we meet in this conference to exchange the knowledge and the information in many aspects of the businesses, technology, entrepreneurship, and also cultures. I hope in this conference, the participants not only can share but also can learn on the issues of entrepreneurship, businesses, and sustainability. Have a great conference.

Thank you

Prof. Ir. Roesdiman Soegiarso, M.Sc., PhD.

iii I ICEBM 2013 ADVISORY BOARD

Prof. Ir. Roesd1111a11 Soeg1arso. l\l Sc .. PhD. Rector ofTarumanagara University Or.Ir. Chairy, S.E.,M.M Vice Rector for Education, Research, and Cooperation Affairs Dr. Saw1dj1 Widoatmodjo, S.E., M.M .. M.B.A. Dean of Faculty ofEconomics Dr. Indra Widjaja, S.E., M.M. Head of Master of Management Program Dr.Ir. Cbairy, S.E.,M.M Director of Tarumanagara Center for Entrepreneurial Studies

SCIENTIFIC COMMITTEE

Prof. Luiz Moutinho University of Glasgow, UK Prof. Bruce R Kingma Syracuse University, USA Prof. Sivakumar Vcnkataramany Ashland University, USA Prof. Vesa Routamaa University ofVaasa, Finland Prof. Benjamin Yuan National Chiao Tung University, Taiwan Prof. Felix T. Mavondo Monash University, Australia Prof. Gian Luca Gregori Universita Politecnica delle Marche, Italy Prof. Silvio Cardinali Universita Politecnica delle Marche, Italy Associate Prof. Tomoki Fujii Singapore Management University, Singapore Dr. Joaquin Aldas Manzano Universidad de Valencia, Spain Dr. Tan Teck Hong Sunway University, Malaysia Ava.nl.i Fontana, Ph.D. , Indonesia Dr. Yono Reksoprodjo University of Indonesia, Indonesia Prof. Tn:sna P. Soemardi University of Indonesia, Indonesia Prof. Roesdiman Soegiarso Tarumanagara University, Indonesia Prof. Carunia M. Firdausy Tarumanagara University, Indonesia Dr. Sawidji Widoatmodjo Tarumanagara University, Indonesia Dr. Chairy Tarumanagara University, Indonesia Dr. Indra Widjaja Tarumanagara University, Indonesia Dr. Ignatius Roni Sctiawan Tarumanagara University, Indonesia Dr. Rina Adi Kristianti Tarumanagara University, Indonesia Jap T,Ji Bcng, Ph.D. Tarumanagara University, Indonesia Lina.Ph.D. Tarumanagara University, Indonesia Dr. Agustinus Puma Irawan Tarumanagara University, Indonesia Dr. Hatto Tanujaya Tarurnanagara University, Indonesia Prof. Ernie Tisnawati Sule Padjajaran University, Indonesia Prof. Ina Primiana Syinar Padjajaran University, Indonesia Ir. Antonius Tanan, M.Sc. University ofCiputra Entrepreneurship Center, Indonesia Agung B. Waluyo University of Ciputra Entrepreneurship Center, Indonesia

iv I ICEBM 20l3 -

ORGANIZING COMMITTEE

Conference Chair : Lina, ST., M.Kom., Ph.D

Conference Sccretariate : Franky Slamet, SE, MM Hetty Karunia Tunjungsari, SE, M.Si

Conference Treasury : Mei le, SE, MM Susanti Zaini, SE

Sponsorship : Herlina Budiono, SE, MM Mihami Tjokrosaputro, SE, MM

Program Chair : Paula Tjatoerwidya Anggarina, SE, MM Sisca Aulia, SJ.Korn

Logistics and Facilities : Didi Widya Utarna, ST, MT Wilson Kosasih, ST, MT

Conference Publication : Agus Budi Dhannawan, S.Kom, MT, M.Sc A.R. Johnsen

v I ICEBM 20 13 -

LIST OF PAPERS

No. Title Author Page I. The Challenge O f Entrepreneurs In A Roesdiman Soegiarso Hal 1-9 Rapid Changing World --- 2. Turnover Intention Trend Among IKeni 10-1 5 Commercial Banks In Penang, Malaysia Rajendran Muthuveloo Teoh Ai Ping Rubiah Ab Ralunan 3. The Impact of Retirement Age On Keni 116-22 Organizational Commitment Rajendran Muthuveloo !Lee Pey Huey treoh Ai Ping 4. Enterprise Agility, Network Structure And 'Mulia Pamadi '23-31 Government Support On Finns' Ishak Ismail Performance: A Study Of Sme Housing Hasnah Haron !Developers In Indonesia • S:--IOesigning Ng-Braille (Nomographs -- Imam Ferly Hasan - - [32-36 Braille) To Develop Basic Entrepreneurial Ninda Arum Rizky Ratnasari [Wahyu Ikhsannudin 1 Skills of Blind Children I r~ ~evitalising the lndianEconomy Through Sharayu Bhakare [37-41- ntreprencurial Mentoring Deepika Chadda --- Entrepreneurial Finance and Indonesian llshak Ramli r Banks' Mergers r The Influence Of Psychological Artarina D A Samoeclra 149-54 - Characteristic On Entrepreneurial Intention Mega Febriani r Among Undergraduate Students Th< Eff"" o£M~ro Emriro-•I IMdShoh - Factors on Information and Communication Mohammed Quaddus Technology Usage by SMEs in a I I r Developing Country Measuring The Effectiveness of rw. Entrepreneurship Education Using l '-"AAlh>w-. Satisfaction Matrix : A Case Study of Islamic University Of Indonesia I Determinants ofFirm Value and Debt Policy As Modcrnting Variable at Rma Adi Kristianti Manufacturing Companies That Distribute r·-0., r Dividend r A Conceptual Framework For Social Saiful Adli Mokhtar Entrepreneurship: A New Perspective For Mokhtar Abdullah Government-Link Social Enterprises In David Yoon Kin Tong I Malaysia ,- I 13. ~atural and Organic Skin Care Perception: Theresia Santoso 185-90 Study In Jakarta Lianti Raharjo I 14. !Gender Differences In Entrepreneurial Endi Sarwoko - 191-95 Intentions IIva Nurdiana

vi I ICEBM 20 13 -

No. Title Author Page 15. THE mfactor For Women Entrepreneurs Lata Krishnan 96-102 16. Development and Design Of Internship Enrico Siswanto 103-1 08 Search Information System Website For Johan Setiawan Multimedia Nusantara University Students 17. 'Marketing Evolution of French Bean As Agriani Hennita Sadeli 109-114 High Value Commodity Through Hesty Nurul Utami Relationship Marketing ~'------''-----"""---~ 18. Business transfer and business development Elina Vararnfilci r. 1s-1 20 lin SMEs Juha Tall Anmari Viljamaa Aapo Uinsiluoto Kirsti Sorama 19. Learning Process and Business Elvy Maria Manurung ;1 21-126 Sustainability: Case Studies of Young JRr. Ida Nuraida !Entrepreneurs In Bandung 20. ~vclopment ofEntreprencu~hip Wina Christina 127-133 rUU] and Entrepreneurship Education David Sukardi Kodrat Yusak Anshori [ Zl. [Business Mentor Hipmi Formation As A rMuladi Wibowo 1134-140 I !Model of Student Entrepreneur lDedy Rustiono o{SME Mo-'" Th<°""'"lroproving The Competitive Advantage and rodhiohKartika N Kur Distribution At Kabupatcn Tasikmalaya r I Eijaz Ahmed Khan 145-157 23. Business Environment and Sustainability Perfonnance of Informal Social Mohammed Quaddus Microentcrprises (Isms) in Developing Anna Lee Row Countries-Qualitative and Quantitative Evidence ~ Innovation To Mbote As the Seasoned Hari Minantyo Flour Michael Ricky Sondak I "~"· I Prasetyon Sepsi I The Influence of Psychological Capital to 61-171 - Work Engagement and Organizational ~ootianainawati Libardja

_ Citizenship J3ehavior . ·- 11 Jilli K.inilertpaisan Intention Towards Koa Hang: An Chakrit Chanchitpreecha r>l7, r """-Exploratory·-"" Survey In Sakon """""' Nakbon Province Implementation ofCorporate Social Agoes Tinus Lis Indrianto, S.S, Responsibility For Urban Tourism In M.Tourism Surabaya l Dewa Gde Satrya, S.E, M.M r Alfon Wicaksi, S.T I I 28. A Study on Factors Influencing The Norizaton Azmin Mohd Nordin r,_ ... Intention to Purchase Counterfeits of IMariati Norhashim Luxury Brands Salar Sadrabadi

vii i ICEBM 201 3 No. Tille Anthor 29. Practices of Bnsiness Start-Ups Among Mariati Norhashim 189-193 Government Retirees In Malaysia

30. The Relatioship Size, Leverage, ArdiansyahRasyi i°" V 194-200 Ownership, Profit, Auditor Size and r Ccnik Ardana Intellectual Capital Disclosure Influence to Linda Santioso Stock Price ~h'be Consequences And Meaning OfThe ~o ny Antonio 201-206 IRelationship Between Creativity, Lucya Christina lntellengence And Personality To Entrepreneurship Achievement Of Universitas Ciputra Graduates .--- 32. Social Entrepreneurship In Educating The !wan -Prasodjo------207-212- IPoor Students : A Case Study of SMA jSelamat Pagi Indonesia at Batu, Malang i IllState of Entrepreneurial-Leaming 'to Tum~waraRaoUna [2 13-221 I Students Jn Teclmology Institutes In India [Yash Saxena ~ Local Fruits Competitive Advantag;- rf-Ie-st_y_N_u_rul.-U_t_arru-.-----~~2 2..228 1 Through Consumer Attitude On Product Agriani Hermila Sadeli I Quality 35. Perspectives ofTour Guides Toward Nina Sibulo Cruz 229-237 Accent Discrimination Erika Bianca Simon Lim Ariannne Francesca Padre Quiazon Kristianne Mara Torres Melissa Kristine Posadas Uy Lizette Alfonso Vicente icole Bolarde Voll rlOnline Dating Site Scam Modes jTueda Renanita r&-240 IWiriana - Corporate Governance, Annual Report ISeptian Bayu Kristanto 1241-246 Disclosure, And lntcmct Financial I Reporting Index Budget Friendly Marketing For StartUps - ~chard Lackes 1247-2_5_2_, E Empirical Study of Seo Success Factors -obias Antoni Tccnagcr's Attitude Toward Sex Jn ~cike Kwniawati _ 1253-257 I Advertising : Boys Vs Girls r - Conswncrs'awarcncss on Marketing Ethics Milwni Tjokrosaputro Jn Conswncr Product (A Study on I 0 Paula TjatOClWidya Anggarina lll 82~ Conswner Product Companies Jn Indonesia) r - -- -r - FIAspects Of Planning & Growth tr eddy Tandaju 1266-272 IMeitty Wongkar f42.""lcan A Destination Be Branded? JTeddyTandaju [273-278 43. [The Role of Perceived Organizational Yeni Anna Appulembang Support (POS) in Tumover Intention with Agustina Organizational Conunitment as Mediating r·-28· r variable

viii I ICEBM 2013 International Conference on Entrepreneurship and BusineS> l\lanagemcnt (ICEBl\1 2013) Snnur, Buh - November 21-22, 2013 ISBN: 978-979-9234-'19-0

THE RELATIONSHIP SIZE, LEVERAGE, 0\VNERSHIP, PROFIT, AUDITOR SIZE AND INTELLECTUAL CAPITAL DISCLOSU RE INFLUENCE TO STOCK PRICE

Ar

F1euliy of Econonuc - A

Abs/Tac: The purpose of this research is to prowt thaJ there is a correlation between the size of disclosure in the annuol nport (intellectual capital disclosure) wi1h corporate sue, corporate ln·erage, ownership, profitability, and audilor slu. Therefore, this associa1ion may be used as a basis into a research model that there is a relationship beiween intellectuol capital disclosure and corporate perfonnance. The corporate peifonnance is proxied by stock price.. The stock price is a reflection ofthe confidence ofcapital markets or result of the interaction ofdemand and supply which occurs in the stock. 711is interaction is assumed to be influenced by the corporate's fundamentals what can be seen in the information content derived from the annual report, particularly, the disclosure of intellectual capital. The consequence of this, the corporate should nonnally encourage to be more transparent, so that seems to look mon attracJive to capital market participants (investors). The result from tltis research is only corporate ownership can predict the inJellectua/ capital disclosure size for the first model. For the second model, the result is the intellectual capital disclosure size can influence the stock market.

Keywords: Intellectual Capital Disclosure.Leverage, Size.Stock Price, Ownership

INTRODUCTION

Some previous of research report (ASB, 2007) and academic studies (Lev, 2001; Mouritsen el Al., 2001) have called for greater disclosure of non-financial indicators of investment in intangi1>1e assets. A radical change in the accounting system makes more relevant for intellectual capital presentation, especially in firms that increase intensively the intellectual capital that the sensible approach towards the enhancement of financial reports is to encourage voluntary disclosure of intellectual capital i~fonnation. But. intangible resources can be presented as pan of 1he information presented voluntarily (voluntary disclosure). In the voluntary disclosure notes is presen1cd as qualitative infonnation and it is also an imporunt part of the financial statements as addirioruil information in the supplementary infonna1ion. Some investors often find something more meaningful infonnation 10 be able 10 sec further description of the company in the future.

194 I ICEBM 2013 Jnternational Conference on Entrepreneurship and Bu>iness Management (lCEBM 2013) Sanur. Bah- November 21-22, 2013 ISBN: 978-979-9234-49-0

TIJEORITICAL REVIEW ,\.lntelle

C. I. Structural variables I. Corporate Size It is very commonly used as an independent variable in accounting disclosure studies, such as that conducted by researcben Raffoumier (1995), Hossain eL Al (1995) and Depocrs (2000) who have concluded that there is a positive relationship between corporate size to the intellectual capilal disclosures size. 2. Corporate Leverage Corporate leverage can be explained by the agency theory and signaling theory that relate to the intellectual capiial disclosure size. The high leverage firma will be followed by high agency costs. This relates to the amount of transfer from debt (\olders (debt holders) to shareholders (stock holders) potentially. Therefore, the high leverage firms have more incentive to voluntarily disclose corporate information and this will reduce agency costs. Based on this understanding, then there is a positive relationship between the corporate leverage to intellectual capital disclosure size. 3. Corporate ownership Agency costs increase with more diffuse ownership structure. This will influence the presentation of financial information. With increasing dilTusion ownership of the company, the corporate will incrense the intellectual c.apitnl disclosure size. Hence, there is a relationship between corporate ownership and the intellectual capital disclosure size. 4. Auditor size

195 I lCEBM 2013 lnlernational Conference on Entrepreneurship and Business i\lanagcmenl ( ICEUi\12013) Sanur, Bah - November 21·22, 2013 ISBN· 978-979-9234-49--0

Audi1or size indica1es the qualny auduor. W11h n>ereasing the auditor size, this will encourage corporate to disclose intellectual cnp1111l d1sclo:;ure. C.2.Perfonnan<:e Variable Corporate earning will inOuence corporation 10 the size of intellectual cnpital disclosure. This is consistent with the signaling theory, which means that the manager wnnlS to increase the size of disclosure, specifically in intellectual capital disclosure area. This indicates that the manager is more revealing good news lo avoid undervaluation against their shares. C.3. Markel Variable Market variable can be reOected by stock price. This is a tranSlation from the perspective of capital market panicipants in valuing the corporate. This variable is affected by how morket panicipants view the corporate prospeclS for the future. Presentation of information in intangible capital disclosure is very helpful for market panicipants 10 read the conditions ofthe corporate prospecL By increasing of intellectual capual disclosure size will provide a good picture about the future prospect and also to clarify the real condition of the corporate in the future. Stock price is a reflection of market confidence for the corporate. The process ofstock pnces in the aggregate is a meeting between a buyer and seller. This means that there has been a meeting point between supply and demand in the capital market (stock). This event is heavily inOuenced by the fundamental of information available in the capital markets and is highly dependent on the presentation of corporate financial infonnation . With the availability of such information can achieve an allocation of capital or funds in a more optimal, regardless of the quali1y of infonnation available on the market. The higher the quality of information , it should be the higher the level of relationship of stock price. With the condition of tbe quality of information lhJlt is more open. especially the presentation of disclosure on the pan of intellectual capitnl asselS in the financial statements can provide a high value to the market in deciding the proper allocation of investments. This will create a consensus of market panicipants arc more perfect 10 target and optimize market conditions will be achieved. This shows that the slOck price reflects the condition assessment of the capital market on corporate performance and prospects of the corporate in the future. D. Thinkillg Framework Suuc1Unll variables and perfomwtec variable arc the factors that affect the intellectual capital disclosure size assets, After that, the intellectual capital disclosure size affect to stock price as a morkel variable. This can be summariud for as follow: 1. Sttuctural variables; firm size, firm leverage, firm ownership, auditor !ypC. 2. Performance Variable; corporate cruning. 3. Market Variable; Stock Price. From the above, that can explain the relationship between sttuctural variables and performance variable to the intellectual capital disclosure size and then the relationship between the intcllectwll capital disclosure size and market variable. This can be depicted in the below: Fig,1. Thinking Framework Srheme

Corporate Size

C0tp0ratc Lcvera~ Corporate Ownership Intellectual Capital Stock Price Disclosure Index Corporate Earning~ Auditor Size

E. Hypothesis Design Based on theory and a framework of thinking, then the hypothesis can be cons1ruc1ed For as follows:

196 J lCEBM 2013 International Conference on Entrepreneurship and Business Management (ICEBl\l 2013) Sanur, Bali - November 2 1·22, 2013 ISBN: 978-979-9234-49-0

There is a posi1ive rela1ionship beiwcen corponue .ize and in1ellec1ual capi1al disclosure size on corporn1e lis1ed m Indonesia S1ock Exchange. 2. There is a posi1ive rela1ionship between corporate leverage and intellecrual capital disclosure size on corporate listed in . 3. There is a positive relationship between corporate ownership and intcllecrual capital disclosure size on corporate listed in Indonesia Stock Exchange. · 4. There is a positive relationship beiween corporate earning and i.ntellectual capital disclosure size on corporate listed in Indonesia Stock Exchange S. There is a positive relationship between auditor size and intellec1ual capital disclosure size on corporate listed in Indonesia S1ock Exchange. 6. Intellectual capital disclosure size positively affects to stock prices on corporate listed in Indonesia Stock Exchange.

RESEARCH METTIOOOLOGY

A. Rtsearch Methods This research is a descriptive srudy using secondary data as a basis for hypothesis testing. This ~arch approach is also based on the correlation of the independent variables with 1he dependent variable in each model of research (correlational srudy). B. Popul1tion, Sample ind Sampling Ttthnique Research object observed is the annual report of the year 2007-2010 for the corporate listed in Indonesia S1ock Exchange. The data and sample selection is purposive sampling method for as below: I. Annual repons, reports and report supplements a management discussion and analysis from 2007 to 2010, in particular the disclosure ofintellecrual capital includes assets. 2. Operational data arc available on the corporate in banking industry Indonesian from Capital Market Directory period 2007 to 2010. 3. Samples arc annual reports from corporate listed in Indonesia Stock Exchange from 2007 to 2010. Sampling was done by filtering the available data from the population, which means if the data is not available and it has big deviation (outliers), then it should be ignored as a sample. C. Data Collection and Techniques The data arc from conversion the qualitative form of secondary data consisting as follow: I. The corporate annual report is from 2007-2010 obtained from the Capital Market Reference Cen1er (CMRC) at the Indonesian Stock Exchange and from web-site. 2. Financial information can be obtained from annual reports, Indonesian Capital Market Directory and web-site of the Indonesia Stock Exchange from 2007-2010. 3. Intellectual capital disclosure size can be obtained from the annual reports contained in the disclosure notes 10 the financial statements and supplementary information (supplementary information) are prescoted in the Indonesia Stock Exchange. D. Research Model The modeling is for as follows: A. First modeling: Y t • a + IH XI t + P2 X2 t + P3 X3 t + fl4 X4 t + ps XS t +ct Y t •Intellectual capital disclosure index in the current period a • constant p I, p 2, P3, P4, PS • regression coefficient XI t = Corporn1e size in the current period X2 t • Corporate leverage in the current period X3 t • Corporale ownership in the current period X4 t = Corporate earnings in the current period XS t = Auditor size in the currcn1 period c t Error term B The second modehng: Z t - a+pl Yt +c t Z t • Stock Price al 1hc currenl period a • constant PI regression coefficient Y t - Intellectual capital disclosure index in die currenl period

197 j ICEBM 20 13 International Conference on Entrepreneurship and Business Management (ICEBM 2013) Sanur, Bali - November 2 1-22, 2013 ISBN: 978-979-9234-49-0 t t = Error tenn

RESULTS

A. Results from the first Model

I.Correlation Analysis (R) and determination (R ')

A test conducted to assess how strong the correlation or relationship of independent variables with the dependent variable. The correlation coefficient is between 0 to I. The greater the R value (close to I) demonstrate the strong correlation of all independent variables with the dependent variable, whereas the smaller the R value (close to 0) indicates the weak correlation of all independent variables with the dependent variable. Test Rand Adjusted R square can be seen in Table 5-5. From Table 5-5 it can be seen that the value of R is equal to 0.505. This indicates that the relationship between corporate size, corporate leverage, ownership of corporate, corporate earnings and auditor size to incellectual capital disclosure !ndex is moderate strong.

For Adjusted R2 value obtained was 0.202 which means that the intellectual capital disclosure index can be influenced by the corporate size, corporate leverage, corporate ownership, corporate earnings and auditor size as independent variable which equal to 20.2%, the remaining is 79.8% is influenced by other factors or outside the regression model. Table 5-5 CoreUation and Determination Test

Model Summarv" Std. Error of the Model R RSquare Adiusced R ~uare Estimate Durbin-Watson I .505' .255 .202 785.87828 1.545 a. Predictors: (Constant}, XS, X2, X4, XI, X3 b. Dependent Variable: Y Test the feasibility of the model is to use the F test which shown in Table 5-6. From this table it can be seen that the significance value is equal to 0.00 I. The model is feasible (fit) if the significance value below the 0.05 poinL It can be concluded that the regression model is feasible (fit), because the significant value off test is 0.001, this result is smaller than 0.05.

Tabet 5-6 ANOVA Model Sum of Squares d.f Mean Square F Sig. I Regression 14834593.112 5 2966918.622 4.804 Residual 43232327.243 70 617604.675 0,001 Total 58066920.355 75

198 i ICEBM 2013 International Conference on Entrepreneurship and Business Management (ICEBM 2013) Sanur, Bali - November 21 -22. 2013 ISBN: 978-979-9234-49-0

2.HypothesisTesting Individual tests are intended to further investigate whether each independent variable individually can be used to predict the dependent variable. Individual testing is to use 1-test statistics with a significance of0.05. Individual test results can be seen in Table S-7. Table 5-7. TTest Analysis of Multiole Regression Unstandardized Standardized Coefficients Coefficients Model I B Std. Error Beta T Si2. (Constant) 224S.397 1820.364 1.233 .222 XI .978 63.6Sl .002 .015 .988 X2 .062 .214 .031 .288 .774 X3 809.449 251.604 .463 3.217 .002 X4 -.28S .379 -.083 -.753 .454 XS 158.306 244.546 .089 .647 .520

T test result can be seen in Table 5-7 for as follows: a. Significance values for Ill (Corporate Size) was 0.988, greater than the O.OS level. This means that Ho accepted and Ha rejected, in other words it can be concluded that the Corporate Size (XI) can not be used to predict the Intellectual Capital Disclosures Size (Y). · b. Significance value for 132 (Corporate Leverage) is 0.774, greater than the 0.05 level. This means that Ha is rejected and Ho accepted, in other words it can be concluded that the Corporate Leverage (X2) can not be used to predict the Intellectual Capital Disclosures Size (Y). c. Significance value for 133 (Corporate Ownership) is 0.002, less than the 0.05 level. This means that Ho is rejected and Ha accepted, in other words it can be concluded that the variables of Corporate Ownership (X3) can be used to predict the Intellectual Capital Disclosures Size (Y). d. Significance values for 134 (corporate earnings) is 0.4S4, greater than the 0.05 level. This means that Ho is accepted and Ha is rejected, in other words it can be concluded that the corporate earnings (X4) can not be used to predict the Intellectual capital disclosure size. e. Significance value for Jl5 (Auditor size) is 0.520, greater than the 0.05 level. This means that Ha is rejected and Ho accepted, in other words it can be concluded that the Auditor size (XS) can not be used to predict the Intellectual Capital Disclosures Size (Y). Multiple regression model (model I) can be formulated as follows: Y = 2245.397 + 0.978Xl+ 0.062X2 + 809.449X3 -28SX4 + IS8 306 XS

CONCLUSION, L IMITATION AND SUGGESTION A.CONCL USION This research aim to test the relationship corporate size, corporate leverage, corporate ownership, corporate earning and auditor to intellectual capital disclosure size. Furthermore, this research is to test the relationship between intellectual capital disclosure size and stock price. The result is to indicate that it is only corporate ownership has a significant relationship to intellectual capital disclosure size. It means that corporate ownership can predict intellectual capital disclosure size in Indonesia Stock Exchange for banking corporations. The result from the second test is to indicate that the intellectual capital disclosure size influence to the stock price. It means that the information content from intellectual capital disclosure size influence stock price. B. Lil\UTATION This research bas limitation in sample selection, because it is only banking corporations that can be selected. Moreover, the period is 2007-2010 or it is only four years. For intellectual capital disclosure size index is quantitative measurement, but the real is a qualitative measurement. This is also a limitation from this research, because the research is to try to convert from qualitative side to quantitative s ide. C. SUGGESTION The research can be developed from model formulation, the first model and second model can be fonnulized into one research rnodel, by us ing interacling bct,vccn incellectua1 capital disclosure size fro1n some variables at the first model. The search can deeply obsc1ve and detennine for index of intellectual capital disclosure size. For further research is beuer to extend the periods and also. the industry. It is not only banking corporation area.

199 I ICEBM 20 13 International Conference on Enrrepreueurship and Business Management (ICEBM 2013) Sanur, Bali - November 2 1-22. 2013 ISBN: Q78-979-9234-49-0

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200 I ICEBM 2013 Organized by:

Facufty of Economics Magister Man~gement Tarumanagara University Tarumanagara University

Supported by:

http:/(teebm.tarumanagara.ac..id email: [email protected]