The Analysis of R&D Impact on the Public Listed Companies’ Performance in Indonesia
| Main Authors: | E., Natasha I.; BINUS BUSINESS SCHOOL, BINUS UNIVERSITY, JWC Campus, Jl. Hang Lekir I No. 6, Kebayoran Baru, South Jakarta 12120, Hutagaol, Yanthi R. I.; BINUS BUSINESS SCHOOL, BINUS UNIVERSITY, JWC Campus, Jl. Hang Lekir I No. 6, Kebayoran Baru, South Jakarta 12120 |
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| Format: | Article info application/pdf eJournal |
| Bahasa: | eng |
| Terbitan: |
Bina Nusantara University
, 2009
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| Subjects: | |
| Online Access: |
http://journal.binus.ac.id/index.php/JAFA/article/view/130 http://journal.binus.ac.id/index.php/JAFA/article/view/130/126 |
Daftar Isi:
- Research & Development (R&D) is one of significant firms’ activities that is expected to enhance firms’ future value. This paper examines the relationship between R&D with firm’s operation and market performance. The sample used is 106 firm years from 32 non-finance firms that listed in Indonesia Stock Exchange (IDX) and report R&D expenditure during period 2004-2007. Two research hypotheses are developed and tested using a multiple regression model. The findings signify that all sample firms have reported their R&D activities accordingly to the applied accounting standard. However, the hypothesis testing results shows that there is no relationship between R&D and firm’s operation and market performance. These findings imply that R&D activities in Indonesian firms are not yet perceived as an important element in firms’ value added chain.