 The effect of institutional ownership on firm innovation: Evidence from Chinese listed firmsZhao Rong, Xiaokai Wu and Philipp Boeing Research Policy, 2017, vol. 46, issue 9, 1533-1551 Abstract: Monitoring by institutional investors can act as an important mechanism to promote firm innovation. By investigating the patenting behavior of Chinese listed firms between 2002 and 2011, we find that the presence of institutional investors enhances firm innovation. Consistent with this monitoring view, we further find that (1) the effect of institutional investors on firm patenting mainly comes from mutual funds; (2) the effect is more pronounced when product market competition is more intense; (3) the effect exists among private- and minority state-owned enterprises, but not among majority state-owned enterprises. The above findings remain robust when innovation quality is examined. Keywords: Institutional investor; Firm innovation; Patenting; Mutual funds; China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:46:y:2017:i:9:p:1533-1551 DOI: 10.1016/j.respol.2017.05.013 Access Statistics for this article Research Policy is currently edited by M. Bell, B. Martin, W.E. Steinmueller, A. Arora, M. Callon, M. Kenney, S. Kuhlmann, Keun Lee and F. Murray More articles in Research Policy from Elsevier |
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