ANALISIS PENGARUH RESEARCH AND DEVELOPMENT TERHADAP RISIKO PERUSAHAAN

Abstract

This study examines the impact of Research and Development (R&D) to corporate risk in Indonesia. The sample in this study consists of 70 companies observed for 18 years starting from year 2000 to 2017. The total sample size is 748 observations after altering for missing data. I estimate the unbalanced panel data with panel regression method. The results show that R&D is effective to reduce the corporate risk. There is no significant difference in risk reduction effectiveness for R&D performed on year 2000 to 2006 or year 2007 and so on. Nevertheless, Indonesian companies which routinely invest on R&D have relatively less effectiveness in reducing the corporate risk