Does Innovation (Patents and R&D) Affect Firm Value?

DOI

10.2991/icaess-19.2019.29How to use a DOI?

Keywords

innovation; R&D; patents; firm value

Abstract

Innovation is a risky activity because it requires a very high cost, takes a long time, and a higher failure rate. This study aims to examine the effect of innovation on firm value. This study uses a sample of manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2007-2017, a total sample of 133 companies with 1025 observations. The analysis technique used is panel data regression analysis with the STATA program 13. Innovation is measured using two proxies, (1) the number of patents and the R & D ratio to sales, and (2) firm value measured by TobinsQ. The results of this study are that innovation has a significant positive effect on firm value. This result supports the signal theory which states that innovation is a positive signal for the company because innovation reflects the company's competitiveness, so it will increase the value of the company. Keywords-innovation, R&D, patents, firm value.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Anjelina
AU  - Ria Anggraini
AU  - Zaenal Fanani
PY  - 2019/12
DA  - 2019/12
TI  - Does Innovation (Patents and R&D) Affect Firm Value?
BT  - Proceedings of the 1st International Conference on Applied Economics and Social Science (ICAESS 2019)
PB  - Atlantis Press
SP  - 203
EP  - 207
SN  - 2352-5398
UR  - https://doi.org/10.2991/icaess-19.2019.29
DO  - 10.2991/icaess-19.2019.29
ID  - 2019/12
ER  -