Mohammad Nasih, Damara Ardelia Kusuma Wardani, Iman Harymawan, Fajar Kristanto Gautama Putra and Adel Sarea
Without a doubt, COVID-19 is a disruptive event that one may not consider before it becomes a global pandemic. This study aims to examine the firm’s risk preference, represented…
Abstract
Purpose
Without a doubt, COVID-19 is a disruptive event that one may not consider before it becomes a global pandemic. This study aims to examine the firm’s risk preference, represented as board characteristics towards COVID-19 exposure in Indonesia.
Design/methodology/approach
This study uses the boardroom’s average value of board age and female proportion to represent board characteristics. Fixed-effect regression based on industry (Industry FE) and year (Year FE) analyses 861 firm-year observations of all firms listed on the Indonesian Stock Exchange in 2019–2020.
Findings
The result shows a positive relationship between the female board and COVID-19 exposure disclosure. Meanwhile, the age proportion does not offer a significant result. The additional analysis document that the directors mainly drove the result and were only relevant during 2020. These results are robust due to coarsened exact matching tests and Heckman’s two-stage regression. This study enriches COVID-19 literature, especially from a quantitative perspective.
Originality/value
The rise of global crises makes the outputs of this study important for non-financial listed firms in Indonesia.
Details
Keywords
Iman Harymawan, Fajar Kristanto Gautama Putra, Amalia Rizki and Mohammad Nasih
The study aims to examine the military-connected firms' risk preference, specifically in the innovation intensity level context. The authors argue that firms with…
Abstract
Purpose
The study aims to examine the military-connected firms' risk preference, specifically in the innovation intensity level context. The authors argue that firms with military-experienced top management have conservative and risk-averse behavior, influencing the innovation investment policy.
Design/methodology/approach
The authors use nonfinancial Indonesian-listed firms from 2010 to 2018 amounted to 2,504 firm-year observations.
Findings
The authors document a negative relationship between military connection with both innovation activities and outputs. The additional analysis documents that risk-preferences of military-connected firms will be drastically changed when the industry has a high digital level, which confirms that risk-averse military-experienced management is less dominant with adaptation skill. The authors also identify that veterans did not need a long tenure to influence firms' innovation investment policy. Lastly, the result is robust due to various endogeneity tests employed.
Originality/value
This study further examines military-connected firms' technological innovation compared to prior studies and enriches the related literature.