Measuring innovation capability and its effects on financial performance using companies’ annual reports

M. Elfan Kaukab
{"title":"Measuring innovation capability and its effects on financial performance using companies’ annual reports","authors":"M. Elfan Kaukab","doi":"10.21511/ppm.22(3).2024.11","DOIUrl":null,"url":null,"abstract":"Companies try to survive and gain competitive advantage by leveraging their innovation capabilities, which need to be more accurately measured through company annual reports to provide valuable insights for investors and stakeholders. The study aims to analyze how innovation capability can be understood using innovative textual analysis based on linguistic cues to assess the level of a company’s innovation capability using secondary data from companies’ annual reports and then validated by empirical tests. The study surveyed 30 companies listed on the Indonesian Stock Exchange from various sectors and industries and applied panel data regression with a five-year time series (2018–2022). Innovation capability was an independent variable, measured by textual analysis approach, and return on assets (ROA) and return on equity (ROE) were dependent variables. Descriptive statistics showed no significant differences in innovation capability, ROA, and ROE across sectors. Correlation analysis revealed no significant association between company age and these variables. Panel data regression confirmed that innovation capability positively influences ROA (p-value 0.078) and ROE (p-value 0.035). Notably, the impact of innovation capability on ROA increased during and after the COVID-19 pandemic, highlighting its growing importance in financial performance during challenging times.","PeriodicalId":509767,"journal":{"name":"Problems and Perspectives in Management","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2024-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Problems and Perspectives in Management","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.21511/ppm.22(3).2024.11","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0

Abstract

Companies try to survive and gain competitive advantage by leveraging their innovation capabilities, which need to be more accurately measured through company annual reports to provide valuable insights for investors and stakeholders. The study aims to analyze how innovation capability can be understood using innovative textual analysis based on linguistic cues to assess the level of a company’s innovation capability using secondary data from companies’ annual reports and then validated by empirical tests. The study surveyed 30 companies listed on the Indonesian Stock Exchange from various sectors and industries and applied panel data regression with a five-year time series (2018–2022). Innovation capability was an independent variable, measured by textual analysis approach, and return on assets (ROA) and return on equity (ROE) were dependent variables. Descriptive statistics showed no significant differences in innovation capability, ROA, and ROE across sectors. Correlation analysis revealed no significant association between company age and these variables. Panel data regression confirmed that innovation capability positively influences ROA (p-value 0.078) and ROE (p-value 0.035). Notably, the impact of innovation capability on ROA increased during and after the COVID-19 pandemic, highlighting its growing importance in financial performance during challenging times.
利用公司年报衡量创新能力及其对财务业绩的影响
公司试图通过利用自身的创新能力来生存并获得竞争优势,这就需要通过公司年报来更准确地衡量创新能力,从而为投资者和利益相关者提供有价值的见解。本研究旨在分析如何利用基于语言线索的创新文本分析来理解创新能力,从而利用公司年报中的二手数据评估公司的创新能力水平,然后通过实证测试进行验证。研究调查了 30 家在印尼证券交易所上市的公司,这些公司来自不同的行业和领域,研究采用了五年时间序列(2018-2022 年)的面板数据回归。创新能力是自变量,通过文本分析方法衡量,资产回报率(ROA)和股本回报率(ROE)是因变量。描述性统计显示,各行业在创新能力、投资回报率和净资产收益率方面没有明显差异。相关分析表明,公司年龄与这些变量之间没有明显关联。面板数据回归证实,创新能力对 ROA(p 值 0.078)和 ROE(p 值 0.035)有积极影响。值得注意的是,在 COVID-19 大流行期间和之后,创新能力对投资回报率的影响有所增加,这表明在充满挑战的时期,创新能力对财务业绩的重要性与日俱增。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
自引率
0.00%
发文量
0
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信