The Influence of Corporate Science and Innovation Toward Firm Value (Empirical Study on Indonesia Manufacturing Firm Listed on Indonesia Stock Exchange between 2011 and 2015)

Soegeng Soetedjo,Annisa Rahma Sofia

The globalization had significant increase in the economic and business by growing cross-border interconnectedness. ASEAN countries attempt to develop economic integration called as AEC (ASEAN Economic Community). Hence business or firms in Indonesia need to create competitive advantage to maintain the sustainability. This study had addressed the gap and determined scientific activities and innovation on firm’s value. In this study, the population was manufacturing company listed on Indonesia Stock Exchange (ISE) between 2011 and 2015. Meanwhile,the sample was obtained by purposive sampling method which met the study criteria. The data was analyzedusing Path Analysis method and SPSS program. The result showed corporate science had insignificant influence toward firm’s value. The corporate science had significant influence toward the innovation. In addition, the innovation also had influence toward the firm’s value and able to mediate the influence of corporate science toward the firm’s value.

Volume 11 | 05-Special Issue

Pages: 1214-1220