OPTIMIZATION OF EMPLOYEE STOCK OPTION PLAN IN ACHIEVEMENT OF FINANCIAL PERFORMANCE INTELLECTUAL CAPITAL BASED

Abstract

The aim of this study is to examine the effects of Intellectual Capital proxied by Human Capital (HC), Structural Capital (SC), and Customer Capital (CC) on the company's financial performance and to examine the impact of stock-based compensation through employees stock options programs on the influence of Intellectual Capital on the company's economic performance. The research sample used is a company that has implemented the Employee Stock Option Plans as a compensation scheme for the 2015-2018 period are 36 companies (144 observations). The partial test uses multiple regression, while the moderating variable test uses residual analysis by examining the effect of deviation from a model. The results showed that partially Human Capital (CC) influences the company's financial performance. It shows that human capital is an important asset in an organization as human capital is both source of innovation and knowledge that can solve a company’s problems as they have sense of belongings for the company.