The Relationship between Innovation Capital, Firm Value, and Firm Risk


  • Arya Aji Aditya Universitas Airlangga
  • Andi Rahmat Kaswar Universitas Airlangga



Innovation capital, firm value, firm risk


The purpose of this study is to examine two relationships: (1) innovation capital and firm value; and (2) innovation capital and firm risk. The population of this study was all companies listed on the Indonesia Stock Exchange from 2016-2020, and the required research sample was drawn using a purposive sampling technique. Data analysis technique used multiple linear regression. The result revealed that innovation capital had a positive and statistically significant effect on firm value, but innovation capital had a negative and insignificant relationship on firm risk. Based on the analysis, it can be concluded that innovation capital has a potential factor to increase company's value, only if companies have a competitive advantage by disclosing the R&D costs and investments in their financial statements. Because of each company is unique, innovation capital is not always related to a systematic risk measurement.


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How to Cite

Aditya, A. A., & Kaswar, A. R. (2022). The Relationship between Innovation Capital, Firm Value, and Firm Risk. EkBis: Jurnal Ekonomi Dan Bisnis, 6(1), 74–86.