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Elevating Profitability: The Roles of R&D Expenses, Selling General & Administrative Expenses, Financial Leverage and Production Cost" MASTER THESIS Written as a requirement To complete a master’s degree
Summary
Naviel Yunus, 2024. Postgraduate Program, University of Brawijaya Malang. Elevating Profitability: The Roles of Innovation, Selling General & Administrative Expenses, Financial Leverage and Production Cost". Supervisor : Cacik Rut Damayanti, S.Sos, M.Prof. Acc., DBA., Co Supervisor: Nur Imamah SAB, MAB, Dr. Phd.
This study aims to investigate the impact of Research and development expenses, Selling, general and administrative expenses (SG&A), production cost, and financial leverage on profitability in the manufacturing sector in Indonesia. Specifically, the impact of research and development expenses toward firm profitability.
The type of research used explanatory research model with quantitative approach. This research relies the Indonesian manufacturing’s financial statements listed on the Indonesian Stock Exchange from 2017 to 2022 and implemented Warp PLS 3.0 for hypothesis testing and path diagram creation.
The results shows that research and development expenses influence significantly on firm profitability whereas SG&A expenses found a contrary finding. These results provide the important role of research and development in increasing company value. This paper presents whether investment in marketing, research, and development Indonesia more beneficial for firm to invest in R&D.
Keywords = Research and development, profitability, manufacturin
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