Title: The Relationship Between Military Experience and Investment Efficiency
Author: Fajar Kristanto Gautama Putra
Student ID: 041914253015
Study Program: Master of Accounting
Year of Publication: 2021
Abstract:
This study aims to obtain empirical evidence regarding the relationship between military experience on corporate boards and corporate investment efficiency. This study uses 3,205 observations from all non-financial public companies in Indonesia during the period 2010–2019. The method used is multiple linear regression with a cluster approach and supplemented with various endogeneity tests to test the hypotheses. The results show that the presence of boards with military experience increases corporate investment efficiency, and this finding is consistent across various endogeneity tests. Furthermore, this relationship is driven by efficiency in research and development costs, avoidance of underinvestment patterns, and only appears when the company's commissioners have military experience. This research finding is important considering the limited number of studies on this topic and can be an additional consideration for shareholders in determining individual professional backgrounds when recruiting a company's top management team.
Keywords: military experience, investment efficiency, research and development, capital expenditure
Read more: https://repository.unair.ac.id/110070/2/2.%20ABSTRAK.pdf