Proceedings of The First International Conference on Global Innovation and Trends in Economy, InCoGITE, 7 November 2019, Tangerang, Banten, Indonesia

Research Article

THE ASSOCIATION BETWEEN ORGANIZATION CAPITAL AND FIRM LIFE CYCLE IN INDONESIA

Download498 downloads
  • @INPROCEEDINGS{10.4108/eai.7-11-2019.2295251,
        author={Christa Aurelia Indrawan and Vina C. Nugroho},
        title={THE ASSOCIATION BETWEEN ORGANIZATION CAPITAL AND FIRM LIFE CYCLE IN INDONESIA},
        proceedings={Proceedings of The First International Conference on Global Innovation and Trends in Economy,  InCoGITE, 7 November 2019, Tangerang, Banten, Indonesia},
        publisher={EAI},
        proceedings_a={INCOGITE},
        year={2020},
        month={5},
        keywords={organization capital life cycle stage of the firm},
        doi={10.4108/eai.7-11-2019.2295251}
    }
    
  • Christa Aurelia Indrawan
    Vina C. Nugroho
    Year: 2020
    THE ASSOCIATION BETWEEN ORGANIZATION CAPITAL AND FIRM LIFE CYCLE IN INDONESIA
    INCOGITE
    EAI
    DOI: 10.4108/eai.7-11-2019.2295251
Christa Aurelia Indrawan1,*, Vina C. Nugroho1
  • 1: Universitas Pelita Harapan
*Contact email: christaaurelia@yahoo.com

Abstract

This research investigates about the association between organization capital and firm life cycle. This research classifies the firms’ life cycle stage from the operating, financing and investing cash flow. Organization capital is measured using selling, general and administrative expenses (SGA) divided with sum of average growth of SGA in Indonesia with depreciation rate of organization capital. The data used to conduct this research is taken from Indonesian Stock Exchange (BEI), with 10 years’ duration from 2006 until 2017. The research result shows that in firms in Indonesia, there is no significant relation between investment in organization capital and a firm’s position in the life cycle