The Role of Intellectual Capital and Profitability through Financial Distress on Firm Value

The Sustainable Development Goals (SDGs) were adopted by nations worldwide in 2015.SDGs number nine is about fostering innovation, fostering inclusive and sustainable industrialization, and developing resilient industries.One way that the industry may support the SDGs is through intellectual capital, which consists of three key organizational components: customer, structural, and human capital.These components are tied to knowledge and technology that can provide value to the business.Examining the impact of profitability and intellectual capital on firm value via financial distress is the goal of this study.This study employs a quantitative approach using secondary data on firms that are listed on the Indonesia Stock Exchange's Liquid Index-45.Structural Equation Modelling-Partial Least Squares is the analysis technique used in this study.This study found that intellectual capital and financial distress drive firm value.In addition, financial distress as an intervening variable between the effect of profitability on firm value.