Along with the business world's growth, the company's development is becoming increasingly rapid. The increasing number of companies operating impacts society and the environment. Some of the positive impacts of the current development include opening more jobs, revitalizing the economy around the company environment and being able to increase state revenues through taxes imposed on companies. However, the existence of these companies can also have a negative impact, such as environmental pollution originating from the activities carried out by the company. From this phenomenon, companies are required to have awareness of the importance of providing accountability to the community and the surrounding environment for the impacts resulting from activities they carry out. This can be done by implementing and disclosing Corporate Social Responsibility activities.

Corporate Social Responsibility Disclosure in Indonesia itself has been regulated in Law no. 40 of 2007, regarding Limited Liability Enterprises. With the existence of this law, companies in Indonesia, especially in the form of Limited Liability Enterprises, are required to present reports that disclose their environmental and social responsibilities. According to Bayu [1], disclosing Corporate Social Responsibility can create a good reputation for companies, many consumers are more educated in choosing the products they will consume in this era, so they will choose products that have a good reputation or brand image.

Disclosure of Corporate Social Responsibility can help companies create a good reputation in stakeholder’s vision because the existence of CSR activities shows that companies have concern for and responsibility for the surrounding social environment [2]. Corporate Social Responsibility Disclosure is an important factor for a company to create a good reputation, maintain business continuity and be able to influence company value to attract investors in making investment decisions. 

In addition, companies must also be able to compete and adapt to the global business environment if they want their companies to survive. One of the company's orientations is a competitive advantage. To create and develop a competitive advantage, companies need to utilize and manage their resources properly. The resource that can be managed and developed by the company is Intellectual Capital. Intellectual Capital is an intangible asset that is a company resource based on knowledge, which if managed properly can increase the company's competitive advantage [3]. According to Soewarno and Ramadhan [4], the optimal application of Intellectual Capital by a company can help the company carry out an effective and efficient strategy. Companies that can take advantage of their Intellectual Capital are considered more able to survive facing difficulties in business, this is such an attraction for investors to keep buying shares of the company concerned [5].

This research conducts empirical analysis on mining companies listed on the Indonesia Stock Exchange from 2015-2019. Mining companies have several stages of activity in carrying out the process of extracting mining materials, including the first stage is prospecting, which is the activity of searching for minerals or valuable minerals. The second stage, exploration is an activity to identify, search and determine the location, location, quantity and quality of minerals or mining materials. In this exploration activity, mining companies are required to be able to find potential mining locations, sophisticated technology and competent human resources are needed to be able to compete with other mining companies. Technology and quality human resources are important assets for mining companies, both of which are included in the Intellectual Capital component, so they need to be managed properly to create a competitive advantage for the company.

The third stage, exploitation activities are the process of taking and transporting mining materials, to then go through the processing process to purify the mining products. This exploitation activity has an impact on the environment around the mine site as a result of the process of taking and transporting mining materials. In addition, it has been regulated in Law no. 40 of 2007 Article 27 paragraph 1, which explains that companies whose business activities are related to natural resources are required to carry out Social and Environmental Responsibility. This mining company's business activities are directly related to natural resources.

Based on the background above, the formulation of the problem in this study is: 

• Does Intellectual Capital affect the value of mining companies

• Does the disclosure of Corporate Social Responsibility affect the value of mining companies

Literature Review and Hypothesis

Stakeholder Theory: According to Donaldson and Preston [6], Stakeholder Theory is a theory that explains that a company's orientation is not only for the company's interests but also must be beneficial to all its stakeholders. In this stakeholder theory, the company is considered a social institution whose role is to help improve the welfare of all its stakeholders. Stakeholder theory has a goal to increase the value of a company through the activities carried out and minimize losses for stakeholders.

Resources Based Theory (RBT)

Resources Based Theory is a theory that explains that a company's competitive advantage can be developed by utilizing superior knowledge through the resources owned by the company [7]. Meanwhile, according to Bontis et al. [8], Resources Based Theory is a theory that explains how the resources owned by the company can be managed and utilized optimally. This theory is more oriented towards maximizing resource management to increase value for the company.

Hypothesis

According to Resources Based Theory, competitive advantage can be developed by utilizing the resources owned by the company. Based on these theoretical concepts, it can be concluded that the better management of the company's resources, the more company's competitive advantage will increase. In this study, the resource in question is an intangible asset in the form of Intellectual Capital. Intellectual Capital consists of three components, which if all three can be managed properly can increase the value of the company through the development of competitive advantage, as follows.

First, Human Capital is related to the quality of the company's human resources, both in the form of knowledge, abilities and experience to employee behavior. To increase the added value of Intellectual Capital, one of which is the need to improve the quality of the company's human resources, namely employees. Quality improvement is marked by increasing employee productivity. Increasing productivity certainly has an impact on sales and company profits, which also increase. The increase in sales and profits will later be able to increase the value of the company [9].

Second, Structural Capital relates to information systems and infrastructure owned by the company. In addition to the need for good quality human resources (Human Capital), support from information systems and infrastructure that is well integrated within a company is also needed. The better information system, the better presentation, disclosure and reporting of company information to its stakeholders, so that the information presented and reported by the company becomes more useful. The availability of complete and adequate information can increase the value of the company.

Third, Relational Capital is related to the company's relationship with customers, suppliers and other external parties in the company. In Relational Capital, the company's reputation is very important. Creation of a good reputation can strengthen stakeholder trust in the company. This can create a competitive advantage for the company so that the value of the company also increases. This is in line with research conducted by Ahmed et al. [10], Laurensia and Hatane[9] and Lotfi et al. [11], who concluded that Intellectual Capital has a positive effect on company value. Based on the description above, the hypothesis can be obtained as follows.

• H1: Intellectual Capital has a positive effect on firm value

In stakeholder theory, it is explained that companies are not only oriented to the interests of the company itself but also to all of its stakeholders. In this case, companies are required to make good contributions to investors, employees, customers, society, government and other stakeholders as well as behave ethically towards society and the environment for the impacts arising from company activities.

The company's contribution is proof of the company's social and environmental responsibility and concern, which is expressed through Corporate Social Responsibility. With the company contributing to the environment and society, it can create a good reputation in front of stakeholders. A good reputation will create a sense of trust between stakeholders and the company. The loyalty of customers, communities, suppliers and other stakeholders to the company is an added value for the company. This description is supported by research conducted by Ariyani and Wirakusuma [12], Fajriana and Priantinah [13] and Natanegara and Juniarti [14], which state that CSR disclosure has a positive effect on firm value. Based on the description above, the hypothesis is obtained as follows.

• H2: Corporate Social Responsibility Disclosure has a positive effect on company value

Data Types and Sources

This research used quantitative methods and secondary data sources. The secondary data used in this study are the company's financial reports and annual reports obtained through the Indonesia Stock Exchange and the company's official website.

Population and Research Sample

The population used is companies engaged in the mining sector which are listed on the Indonesia Stock Exchange from 2015-2019. Based on the data obtained, there were 12 mining companies listed on the Indonesia Stock Exchange in a row for 2015-2019. The sampling technique uses a purposive sampling technique, with the following criteria:

• The mining company presents a complete annual report for 2015-2019

• Mining companies that prepare financial statements using rupiah currency units

• Mining companies provide complete data related to the information needed in this research

Research and Measurement Variables

Intellectual Capital: In this study, Intellectual Capital is measured using the Value-Added Intellectual Coefficient (VAICTM) proposed by Pulic [15], consisting of several stages in its measurement, as follows:

• VA = OUTPUT – INPUT

• VAHU = VA/HC

• VACA = VA/CE

• STVA = SC/VA

• VAICTM = VAHU + VACA + STVA

Disclosure of Corporate Social Responsibility

CSRI =

Note:

• The number of items disclosed by the company

• n: Total items of GRI Standards

• n ≤77

Firm Value

Tobin's Q =

Note:

• EMV               = Equity Market Value

• DEBT             = Book value of total debt

• TA                   = Total Assets

Descriptive Statistics

This study conducted descriptive statistical analysis to obtain an overview or description of the average value (mean), standard deviation, maximum and minimum of the variables in this study, namely Intellectual Capital (IC), Corporate Social Responsibility Disclosure (CSR) and Corporate Value (Tobin’s Q). Following are the results of the descriptive statistical analysis in this study (Table 1).

Based on the calculations that have been done, it is obtained that Intellectual Capital (IC) has an average value (mean) of -11.7598. While the standard deviation is 103.5293. Then, the minimum value on the IC variable is -798.1467. While the maximum value is 37.6102.

Based on the calculations that have been done, the disclosure of Corporate Social Responsibility (CSR) has an average value (mean) of 0.226. While the standard deviation is 0.1538. Then, the minimum value on the CSR disclosure variable is 0.052. While the maximum value is 0.571.

Based on the calculations that have been done, it is obtained that Tobin's Q has an average value (mean) of 1.1930. While the standard deviation is 0.77252. Then, the minimum value on Tobin's Q variable is 0.3011. While the maximum value is 4.7552.

Table 1: Descriptive Statistics

Source: Author Computation, 2023

Classic Assumption Test

After carrying out the classic assumption test on the research data, including the normality test, heteroscedasticity test, multicollinearity test and autocorrelation test, it can be concluded that there is no problem in the classic assumption test in this study.

Hypothesis Testing

Table 2 shows the results of testing the research hypothesis.

Based on the analysis that has been done, it is known that the R Square value is 0.229. This means that the variable Intellectual Capital (IC) and disclosure of Corporate Social Responsibility (CSR) can affect the value of the company (Tobin's Q) by 22.9%. While the remaining 77.1% is influenced by other variables outside of this study. The results of hypothesis testing (Table 2) conclude that (1) Intellectual Capital (IC) does not affect firm value; (2) disclosure of Corporate Social Responsibility (CSR) has a positive and significant effect on firm value.

Table 2: Multiple Linear Regression Analysis

Source: Author Computation, 2023

The Effect of Intellectual Capital on Firm Value

Based on the results of the hypothesis testing described earlier, it is known that Intellectual Capital (IC) does not affect firm value. These results explain that the market provides an undervaluation of resources in the form of Intellectual Capital managed by companies. The lack of market appraisal of Intellectual Capital may be caused by the following possibilities.

First, investors consider physical assets or tangible assets owned by companies rather than intangible assets, in this case, Intellectual Capital. In addition, it is also shown in this research sample, that physical assets or tangible assets in mining companies are more dominant than intangible assets. For example, the average percentage of intangible assets of PT. Elnusa, Tbk. and PT. Various Mines, Tbk. only 0.68% and 0.56% when compared to their physical assets.

Second, companies are not good at managing and utilizing their resources, in the form of Intellectual Capital, so they are less able to improve and develop their competitive advantage. According to Soufyan et al. [16], classifying the Business Performance Indicator (BPI) based on the Value-Added Intellectual Capital (VAIC) score in Table 3.

If we look at the average of this research data, from 2015 to 2019 there were four to five companies that were classified as bad performers or had a VAIC score of less than 1.5 in managing their Intellectual Capital. This is because in 2015-2019 the mining industry was not at its best performance. The emergence of this phenomenon was due to the declining prices of mining commodities, such as coal, oil and tin. The weakening of mining commodity prices was caused by the world economic slowdown and reduced market demand. This phenomenon certainly affected the performance of mining companies, causing them to experience a decline in those years [17-19].

Table 3: Business Performance Indicator

Source: Soufyan et al. [16]

Effect of Corporate Social Responsibility Disclosure on Corporate Value

Based on the results of the hypothesis testing described earlier, it is known that the disclosure of Corporate Social Responsibility (CSR) has a positive and significant effect on firm value. These results explain that the market gives more appreciation or assessment to companies that are getting better at disclosing Corporate Social Responsibility (CSR). The better company is in carrying out Corporate Social Responsibility (CSR) activities and the wider it is in disclosing Corporate Social Responsibility (CSR) it can create a good reputation for the company and it influences increasing stakeholder loyalty to the company. This is then able to increase the value of the company.

Based on this research analysis, it can be concluded that Intellectual Capital (IC) does not affect the value of mining companies. These results explain that the market provides an undervaluation of the resources managed by the company, in the form of Intellectual Capital. This may be due to investors considering other factors in making investment decisions, such as physical assets or tangible assets, or the lack of companies managing and utilizing their resources, in the form of Intellectual Capital so that they are less able to improve and develop their competitive advantage.

Corporate Social Responsibility Disclosure (CSR) has a positive and significant effect on the value of mining companies. These results explain that the market gives more appreciation or assessment to companies that are getting better at disclosing Corporate Social Responsibility (CSR). Thus, creating a good reputation for the company and being able to strengthen stakeholder loyalty which then increases the value of the company.

In this study, some limitations might affect the results of the study. The limitations of this study are as follows: 

• In the Intellectual Capital variable there is a component of employee expenses, which in this study is calculated from the costs of employee salaries and benefits. And does not include employee training costs. This is because the companies that are the sample of the study do not present employee training costs in a separate account in the financial statements.

• In identifying Corporate Social Responsibility disclosures, there is an element of subjectivity from researchers in interpreting Corporate Social Responsibility items disclosed by companies

Based on the limitations in this study, the following are suggestions for further research: 

• Future research can add employee training costs to the calculation of employee expenses, thus enabling a better calculation of the Intellectual Capital component

• Future research is expected to add to other research samples in other corporate industries, to provide an overview of Intellectual Capital and disclosure of Corporate Social Responsibility in various corporate industries

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