Hedge fund ownership and the innovation of high-tech firms: Evidence from the Science and technology innovation board in China

Lu Li, Yang Li, Yuqian He and Yishu Chen

Economics Letters, 2023, vol. 233, issue C

Abstract: High-tech firms stand apart from traditional firms due to their emphasis on innovation. This paper provides empirical evidence indicating new mechanisms through which hedge fund holdings enhances innovation of high-tech firms listed on the Science and Technology Innovation Board in China. Different from that of traditional firms, this paper finds that hedge fund ownership enhances innovation output by increasing innovation input and improving innovation efficiency of high-tech firms in China. The positive relationship is especially evident among firms with long-term holdings by hedge funds, low agency costs, a high degree of equity checks and balances, and those that are privately held enterprises.

Keywords: Hedge fund ownership; Innovation; High-tech firms (search for similar items in EconPapers)
JEL-codes: G23 G34 O32 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176523004469
Full text for ScienceDirect subscribers only

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:eee:ecolet:v:233:y:2023:i:c:s0165176523004469

DOI: 10.1016/j.econlet.2023.111420

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().