INTELLECTUAL CAPITAL AS A BASIS IN DETERMINING THE CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE (CASE STUDY OF SMALL HANDICRAFT INDUSTRIES IN GIANYAR-BALI REGENCY INDONESIA)

This study aims to analyze the influence of Intellectual capital including: Human Capital, Structural Capital and Relational Capital on Capital Structure and Financial performance; and the influence of Capital Structure on Financial performance. The research population is the Handicraft Industry in Gianyar which has been recorded as being active in transactions in the last five years and the products produced are at least 50% exported (total 464 units). The sample size is determined by the Slovin formula, obtained the minimum number of samples that must be taken as many as 82 business units. Sampling was done by stratified proportional random sampling based on the type of handicraft industry products. The analysis model used is Partial Least Square (PLS). This study found that Intellectual capital which includes Human Capital, Structural Capital, and Relational Capital has a positive effect on Capital Structure and Financial performance; and Capital Structure has a positive effect on financial performance. Keywords: Intellectual capital, Capital Structure, Financial performance, Handicraft Industry, Partial Least Square