How Do Start-up Characteristics and Innovation Practices Influence Share Value? An Empirical Examination
DOI:
https://doi.org/10.22441/jimb.v9i2.20836Keywords:
Start-up, Share value, Asset, Capital, EmployeesAbstract
Start-up ecosystems, with their inherent dynamism and potential for innovation, have grown significantly in recent years. However, understanding the factors that influence their share value remains an intricate task. This research aims to elucidate the direct and indirect impacts of start-up attributes - assets, capital, and employees - and their innovative practices on the share value of these burgeoning enterprises. Using regression analysis on data collected from start-ups operating between 2019 and 2022, this study uncovers several critical insights. The assets, capital, and number of employees were found to have a significant influence on the level of innovation within the start-up. Yet, surprisingly, these factors, along with innovation itself, did not exert a direct influence on the start-up shares. However, an indirect effect was noticed, with assets and capital influencing shares when mediated by innovation. No such indirect effect was discerned with the number of employees. This study enriches the existing literature by providing a nuanced perspective on the interconnectedness of start-up characteristics, innovation, and share value. Moreover, it presents vital insights to investors and start-up decision-makers by underscoring the essential role of innovation in enhancing share value. For future research, exploration of other potential mediators and examination of these relationships across diverse start-up contexts is recommended to develop a more comprehensive understanding.
Downloads
References
Acosta-Prado, J. C. (2020). Relationship between Organizational Climate and Innovation Capability in New Technology-Based Firms. Journal of Open Innovation: Technology, Market, and Complexity, 6(2), 28. https://doi.org/10.3390/joitmc6020028
Anisa, A. N. (2013). Pengaruh Hutang Dan Ekuitas terhadap Harga Saham (Studi Empiris Pada Perusahaan Food and Beverages Yang Terdaftar Di Bursa Efek Indonesia Periode 2009–2011) [Skripsi, Esa Unggul University]. https://digilib.esaunggul.ac.id/pengaruh-hutang-dan-ekuitas-nterhadap-harga-saham-studiempiris-pada-perusahaan-food-and-beverages-yang-terdaftar-dibursa-efek-indonesia-periode-2009--2011/76
Arts, J. W. C., Frambach, R. T., & Bijmolt, T. H. A. (2011). Generalizations on consumer innovation adoption: A meta-analysis on drivers of intention and behavior. International Journal of Research in Marketing, 28(2), 134–144. https://doi.org/10.1016/j.ijresmar.2010.11.002
Cantele, S., & Cassia, F. (2020). Sustainability implementation in restaurants: A comprehensive model of drivers, barriers, and competitiveness-mediated effects on firm performance. International Journal of Hospitality Management, 87, 102510. https://doi.org/10.1016/j.ijhm.2020.102510
Chakraborty, I. (2010). Capital structure in an emerging stock market: The case of India. Research in International Business and Finance, 24(3), 295–314.
Cheng, F., Chiao, C., Wang, C., Fang, Z., & Yao, S. (2021). Does retail investor attention improve stock liquidity? A dynamic perspective. Economic Modelling, 94, 170–183.
Cupák, A., Fessler, P., Hsu, J. W., & Paradowski, P. R. (2022). Investor confidence and high financial literacy jointly shape investments in risky assets. Economic Modelling, 116, 106033. https://doi.org/10.1016/j.econmod.2022.106033
Davis, G., & Marquis, C. (2021). The globalization of stock markets and convergence in corporate governance. In The economic sociology of capitalism (pp. 352–390). Princeton University Press.
Eka, R. (2016). List of Indonesian Startups in the Health Sector. Dailysocial. https://dailysocial.id/post/daftar-startup-indonesia-di-bidang-kesehatan
Fahlevi, M. (2019). The Influence of Exchange Rate, Interest Rate and Inflation on Stock Price of LQ45 Index in Indonesia. 157–163. https://doi.org/10.2991/icas-19.2019.34
Fahlevi, M., & Alharbi, N. S. (2021). The Used of Technology to Improve Health Social Security Agency Services in Indonesia. 3rd International Conference on Cybernetics and Intelligent Systems, ICORIS 2021. Scopus. https://doi.org/10.1109/ICORIS52787.2021.9649649
Halawa, L., & Br.Purba, N. M. (2020). Pengaruh Total Aset, Liabilitas dan Ekuitas Terhadap Harga Saham Pada Perusahaan Manufaktur di Bursa Efek Indonesia. Akrab Juara: Jurnal Ilmu-ilmu Sosial. Akrab Juara : Jurnal Ilmu-Ilmu Sosial, 5(3), Article 3.
Juhandi, N., Fahlevi, M., Purnamawati, I., Kesa, D. D., Setyawan, B., & Tantriningsih, H. A. (2022). XBRL: The new e-language of financial digital reporting in Indonesia. Journal of Management Information & Decision Sciences, 25(S1), 1–8.
Katadata. (2017). 10 Kategori Startup yang Paling Diminati Investor.
Kondova, G., & Simonella, G. (2019). Blockchain in Startup Financing: ICOs and STOs in Switzerland. Journal of Strategic Innovation and Sustainability, 14(6), 43–48.
Kuniawati, R., & Asyik, N. F. (2017). Kinerja Keuangan Sebagai Variabel Intervening Pengaruh R&D Dan Intangible Asset Pada Nilai Perusahaan. Jurnal Ilmu Dan Riset Akuntansi (JIRA), 6(10), Article 10. http://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/view/1715
Lind, D. A., Marchal, W. G., & Wathen, S. A. (2018). Statistical Techniques in Business & Economics (17th ed., p. 897). McGraw Hill Education.
Meiryani, M., Delvin Tandyopranoto, C., Emanuel, J., Lindawati, A. S. L., Fahlevi, M., Aljuaid, M., & Hasan, F. (2022). The effect of global price movements on the energy sector commodity on bitcoin price movement during the COVID-19 pandemic. Heliyon, 8(10), e10820. https://doi.org/10.1016/j.heliyon.2022.e10820
Morabito, M. S., & Shelley, T. O. (2018). Constrained Agency Theory and Leadership: A New Perspective to Understand How Female Police Officers Overcome the Structural and Social Impediments to Promotion. Feminist Criminology, 13(3), 287–308. https://doi.org/10.1177/1557085118763104
Nayak, J. K., & Singh, P. (2021). Fundamentals of research methodology problems and prospects. SSDN Publishers & Distributors.
Saunders, M., Lewis, P., & Thornhill, A. (2009). Research Methods for Business Students (5th ed.). Prentice Hall.
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. John Wiley & Sons.
Suwarni, Noviantoro, R., Fahlevi, M., & Abdi, M. N. (2020). Startup valuation by venture capitalists: An empirical study Indonesia firms. International Journal of Control and Automation, 13(2), 785–796.
Vo, X. V. (2016). Foreign investors and corporate risk taking behavior in an emerging market. Finance Research Letters, 18, 273–277. https://doi.org/10.1016/j.frl.2016.04.027
Downloads
Published
How to Cite
Issue
Section
License
The copyright of this article was transferred to Universitas Mercu Buana if and when the article was accepted for publication. The undersigned below transfers all and all rights in and to paper including without limitation all copyright to UMB. The undersigned states and guarantees that the paper is genuine and that he is the author of the paper, except material that is clearly identified as the original source, with the notification of the permission of the copyright owner if necessary and has the power and authority to make and carry out this assignment. We state that this paper has not been published in the same form elsewhere.
Furthermore, I / We hereby transfer unlimited publicity rights to the above mentioned papers as a whole to Universitas Mercu Buana. Copyright transfers include the right to reproduce and distribute articles, including reprints, translations, photo reproductions, microforms, electronic forms (offline, online) or other reproductions that have similar properties. The appropriate author signs and accepts the responsibility for releasing this material on behalf of each and all co-authors. This agreement must be signed by at least one of the authors who has obtained approval from the co-author (s) where applicable.
After the submission of this agreement is signed by the appropriate author, changes in authorship or in the order of the registered author will not be accepted. Retained Rights / Provisions and Conditions Although the author is permitted to reuse all or part of the Work in another work, this does not include giving a third party request for reprinting, republishing, or any other type of reuse.
