Shareholding by industry peers, firm size, and innovation quality

Yumiao Deng, Yongling Ding, Chen Li and Sichao Ma

Finance Research Letters, 2025, vol. 80, issue C

Abstract: Corporate technological innovation is a critical driver of economic growth and competitive advantage. The ownership structure significantly influences corporate innovation strategies and outcomes. Based on a sample of listed companies from 2016 to 2022, this paper investigates the impact of industry peer shareholding on the innovation quality. Empirical results indicate that a higher proportion of shareholding by industry peers is associated with higher innovation quality, reflected in elevated average patent citation rates, particularly among small firms. Mechanism analysis suggests that peer shareholding significantly reduces the R&D investment volatility and improves the diversity of R&D activities, thus promoting innovation activities of small firms.

Keywords: Industry peers; Firm size; Innovation quality (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006063

DOI: 10.1016/j.frl.2025.107343

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