Eurasia: Economics & Business (Aug 2019)
DO CEO CHARACTERISTICS AFFECT R&D INTENSITY? EVIDENCE FROM MANUFACTURING COMPANIES IN INDONESIA
Abstract
Research and Development (R&D) in a company is regarded a high-risk agenda. Latest research shows that personal characteristics of a CEO can affect the policies made by a company. The characteristics of CEO referred to in this research are derived from the upper-echelon theory that categorizes major observable characteristics of CEO including gender, age, and education background. This research analyzed the influence of CEO characteristics on R&D intensity. Research samples were manufacturing companies listed in Indonesia Stock Exchange during 2013-2014. In this research, regression analysis was administered which results showed that CEO’s age significantly influenced R&D intensity. Differently, CEO’s gender and education background were not found to have significant influence on R&D intensity.
