M. Elfan Kaukab

Companies try to survive and gain competitive advantage by leveraging their innovation capabilities, which need to be more accurately measured through company annual reports to provide valuable insights for investors and stakeholders. The study aims to analyze how innovation capability can be understood using innovative textual analysis based on linguistic cues to assess the level of a company’s innovation capability using secondary data from companies’ annual reports and then validated by empirical tests. The study surveyed 30 companies listed on the Indonesian Stock Exchange from various sectors and industries and applied panel data regression with a five-year time series (2018–2022). Innovation capability was an independent variable, measured by textual analysis approach, and return on assets (ROA) and return on equity (ROE) were dependent variables. Descriptive statistics showed no significant differences in innovation capability, ROA, and ROE across sectors. Correlation analysis revealed no significant association between company age and these variables. Panel data regression confirmed that innovation capability positively influences ROA (p-value 0.078) and ROE (p-value 0.035). Notably, the impact of innovation capability on ROA increased during and after the COVID-19 pandemic, highlighting its growing importance in financial performance during challenging times.

Type of the article: Research Article

Abstract
Urbanization and energy investment are increasingly interconnected, yet previous studies provide conflicting evidence regarding their relationship across different regional contexts. The relationship is particularly relevant to international business because regional differences in urban development and energy investment may shape the conditions for infrastructure-related investment. This study examines the relationship between changes in urban ecosystem indicators and energy investment growth across eight global regions from an international business perspective. The analysis is based on urban indicators derived from the Global Human Settlement Layer and energy investment data from the International Energy Agency. Urban indicators are aggregated for the ten largest cities in each region, comprising 80 cities, while energy investment is measured at the regional level. Percentage changes between 2015 and 2025 are compared using a 2×2 classification based on cross-regional median values across 20 urban–energy matrix combinations. The results reveal substantial heterogeneity. China most frequently exhibits Above-Median Urban Change–Above-Median Investment Growth configurations in 16 combinations, while India most frequently exhibits Below-Median Urban Change–Above-Median Investment Growth configurations in 12 combinations. Africa and the United States most frequently exhibit Below-Median Urban Change–Below-Median Investment Growth, whereas Latin America most frequently exhibits Above-Median Urban Change–Below-Median Investment Growth. The European Union, Southeast Asia, and the Middle East show borderline patterns because of tied configurations. These findings indicate that changes in urban ecosystems and energy investment do not follow a uniform regional pattern. The results support a context-dependency in which institutional and regional contexts are relevant to understanding urban–investment relationships.