EconPapers    
Economics at your fingertips  
 

Mutual fund activism and corporate innovation: Evidence from China

Bingrun Xu, Wenli Huang, Lu Li and Lei Lu

Accounting and Finance, 2023, vol. 63, issue S2, 2755-2779

Abstract: This paper examines whether and how mutual fund activism affects corporate innovation. Using a patent‐based innovation dataset from 2006 to 2017, our finding, which is inconsistent with the managerial myopia hypothesis, reveals that mutual fund intervention is associated with corporate innovation. We propose that mutual fund intervention promotes corporate innovation, proxied by invention patents. In addition, the effect of mutual fund intervention on corporate innovation is more pronounced for non‐state‐owned enterprises (non‐SOEs) than for state‐owned enterprises (SOEs), and that mutual fund intervention is likely to increase firms' portfolio R&D expenditures. Finally, we offer robustness checks and address possible endogeneity concerns.

Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/acfi.13057

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:acctfi:v:63:y:2023:i:s2:p:2755-2779

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0810-5391

Access Statistics for this article

Accounting and Finance is currently edited by Robert Faff

More articles in Accounting and Finance from Accounting and Finance Association of Australia and New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery (contentdelivery@wiley.com).

 
Page updated 2024-12-28
Handle: RePEc:bla:acctfi:v:63:y:2023:i:s2:p:2755-2779