The Effect Of R&D Volatility on Market Value with The Role of Executive Overconfidence as a Moderating Variable

Dwi Indah Ratna Sari (Sharia Accounting, Islamic Economics and Business, UIN Raden Mas Said Surakarta, Indonesia)
Fitri Laela Wijayati (Departement of Islamic Accounting, Islamic Economic and Business Faculty IAIN Surakarta, Indonesia)

Accounting and Finance Studies
Vol. 4 No. 1 (2024): Issue: January

This study aims to determine the effect of R&D Volatility on Market Value with the Role of Executive Overconfidence as a Moderating Variable. This study analyzes companies listed on the Indonesia Stock Exchange (IDX) in 2018-2021. The data used is secondary data from the company's annual financial statements. The population used in this study are companies listed on the Indonesia Stock Exchange (IDX) in 2018-2021. The sampling technique used was the purposive sampling technique. We obtained a final sample of 27 companies. The analysis technique used is panel data regression analysis using the Eviews 9 program. The results showed that the R&D Volatility variable positively affected market value. Overconfidence has a positive effect on market value. Executive overconfidence negatively moderates the relationship between R&D volatility and market value.