The Relationship Between Corporate Innovation and Corporate Governance: Empirical Evidence from Indonesia

• 발행기관: 한국유통과학회
• 저자명: Mohamad Rahmawan ARIFIN Bayu Sindhu RAHARJA Arif NUGROHO Frank ALIGARH
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 9 No.3, 105~112쪽, 전체 8쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2022.03.30

영문 초록

The current study is at the forefront of examining the theory of principal-agent framework and financing constraints to explain the level of corporate innovation. To boost the firm’s level of innovation, this study uses corporate governance and corporate performance as driving factors. The study’s secondary goal is to give information on the parallel relationship between corporate governance and the level of corporate innovation. This study used a two-step least square (TSLS) regression analysis to examine such a simultaneous association using secondary data from Indonesian listed businesses from 2000 to 2021, which totaled around 1,910 observations. This study uses the Principal Component Analysis (PCA) tool to test cumulative variances of potential corporate governance indicators such as the total commissioner of the firm (TCOM), total independent commissioner of the firm (INDPCOM), the proportion of institutional ownership (INSOWN), total female commissioner (FEMCOM), CEO duality (CEODUAL), and type of the firm (SOE). As a result, PCA reveals that four of these variables, omitting CEODUAL and SOE, were a corporate governance construct. Furthermore, the study discovered that the amount of firm innovation and corporate governance are related.

목차

1. Introduction

2. Literature Review

3. Research Methods

4. Results

5. Conclusion

References

키워드

GCG Innovation Agency Theory Financial Constraint