TY - JOUR
T1 - Managerial compensation, family firms and firms' innovation
T2 - evidence from Indonesia
AU - Bintarto, Elshabyta Auditya
AU - Nasih, Mohammad
AU - Haider, Imran
AU - Harymawan, Iman
AU - Putra, Fajar Kristanto Gautama
N1 - Publisher Copyright:
Copyright © 2022 Inderscience Enterprises Ltd.
PY - 2022
Y1 - 2022
N2 - The purpose of this paper is to examine the impact of executive compensation, family firm concentration, and their association to firm innovation (proxied by R&D activities and intangible assets). Research and development intensity levels imply the firm's long-term commitment to the innovation and development of the firm. Management compensation is one of the fundamental incentives to motivate investing in R&D activities and products of innovation. Our sample consists of 988 Indonesian listed companies for the period of 2013-2017. Overall, the results indicate that the managerial compensation is positively related, whereas family firm concentration is negatively related to firms' innovation (proxied by R&D investment and intangible assets). Findings suggest that total compensation given to executives and commissioners motivates them to invest more in their R&D activities and innovation product. We contribute to the literature on managerial compensation and firm innovation in Indonesian settings. This study provides insight as it uses several proxies and endogeneity tests which confirms the prior studies' result.
AB - The purpose of this paper is to examine the impact of executive compensation, family firm concentration, and their association to firm innovation (proxied by R&D activities and intangible assets). Research and development intensity levels imply the firm's long-term commitment to the innovation and development of the firm. Management compensation is one of the fundamental incentives to motivate investing in R&D activities and products of innovation. Our sample consists of 988 Indonesian listed companies for the period of 2013-2017. Overall, the results indicate that the managerial compensation is positively related, whereas family firm concentration is negatively related to firms' innovation (proxied by R&D investment and intangible assets). Findings suggest that total compensation given to executives and commissioners motivates them to invest more in their R&D activities and innovation product. We contribute to the literature on managerial compensation and firm innovation in Indonesian settings. This study provides insight as it uses several proxies and endogeneity tests which confirms the prior studies' result.
KW - Family firms
KW - Indonesia
KW - Innovation
KW - Intangible assets
KW - Managerial compensation
KW - R&D investment
UR - http://www.scopus.com/inward/record.url?scp=85125071898&partnerID=8YFLogxK
U2 - 10.1504/IJMFA.2022.120936
DO - 10.1504/IJMFA.2022.120936
M3 - Article
AN - SCOPUS:85125071898
SN - 1753-6715
VL - 14
SP - 35
EP - 55
JO - International Journal of Managerial and Financial Accounting
JF - International Journal of Managerial and Financial Accounting
IS - 1
ER -
