Innovation activity impact on adding value to the enterprise: empirical analysis

Abstract

In the context of economy digitalization corporate innovative activity is one of the main competitive advantages, which should have impact on adding value to the enterprise. The aim of this study is to explore if there is relation between innovation activity level of the Russian companies and their value. Analysis of balanced panel data based on the application of random effects and fixed effects models is used to test research hypotheses. The sample contains 19 Russian nonfinancial public companies (2012-2019). The results of the empirical study demonstrate the positive relation between corporate innovation activity level and company value. The influence of expenditures on staff development (one of the corporate social responsibility (CSR) directions) on the latter is addressed as well, however, no statistically significant result is received in the short run, probably confirmation of a positive relationship can be obtained in the long term. Moreover, impact of general CSR indicator on corporate value can be tested to make further conclusions on the validity of the idea of joint influence of innovation activity and CSR on the value of companies.

A study of the impact of investment in SDGs on corporate value enhancement in the chemical industry

“…In addition, current CSR activities are not directly related to the achievement of SDG goals [12][32] [82]. On the other hand, some papers take a positive position such as larger and more profitable companies start working on the SDGs at an earlier stage [96] and the sustainable growth potential of companies is positively correlated with their CSR ratings [20] [48]. However, all of the previous studies adopted a managerial approach and none were based on an economic approach .…”