Purpose

The study aims to examine the military-connected firms' risk preference, specifically in the innovation intensity level context. The authors argue that firms with military-experienced top management have conservative and risk-averse behavior, influencing the innovation investment policy.

Design/methodology/approach

The authors use nonfinancial Indonesian-listed firms from 2010 to 2018 amounted to 2,504 firm-year observations.

Findings

The authors document a negative relationship between military connection with both innovation activities and outputs. The additional analysis documents that risk-preferences of military-connected firms will be drastically changed when the industry has a high digital level, which confirms that risk-averse military-experienced management is less dominant with adaptation skill. The authors also identify that veterans did not need a long tenure to influence firms' innovation investment policy. Lastly, the result is robust due to various endogeneity tests employed.

Originality/value

This study further examines military-connected firms' technological innovation compared to prior studies and enriches the related literature.

中文翻译：

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军事关联企业的创新强度

目的

该研究旨在检查与军事有关的公司的风险偏好，特别是在创新强度水平的背景下。作者认为，具有军事经验的高层管理人员的公司具有保守和规避风险的行为，影响了创新投资政策。

设计/方法/方法

作者使用 2010 年至 2018 年在印尼上市的非金融公司总计 2,504 个公司年度观察结果。

发现

作者记录了军事联系与创新活动和产出之间的负相关关系。额外的分析表明，当行业具有高数字化水平时，与军事相关的公司的风险偏好将发生巨大变化，这证实了规避风险的军事经验管理在适应技能方面的主导地位较低。作者还指出，退伍军人不需要长期任职即可影响公司的创新投资政策。最后，由于采用了各种内生性检验，结果是稳健的。

原创性/价值

本研究与以往研究相比，进一步检验了与军事相关的公司的技术创新，并丰富了相关文献。