Abstract:
This study aims to test and analyze the influence of Research and Development (R&D), sales growth, capital structure, and profitability on company value in pharmaceutical sub-sector manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2013-2020. The research data was obtained from the annual reports of pharmaceutical sub-sector of manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2013-2020. This research uses a quantitative approach where panel data regression is employed for longitudinal data analysis. The results showed that Research and Development (R&D) and sales growth had a positive and significant effect on the value of the company, while the capital structure and profitability did not have a significant effect on the value of the company. The contribution of this research is to provide evidence of the importance of strengthening Research and Development (R&D), especially in strategic sectors such as pharmaceuticals so that if there is an outbreak like Covid-19, we can be more resilient to overcome the problem. The limitation of this study is that not all companies of the pharmaceutical sub-sector disclose the cost of Research and Development (R&D) in their annual reports.
