Economics at your fingertips  

The effect of institutional ownership on firm innovation: Evidence from Chinese listed firms

Zhao 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)
JEL-codes: G20 G32 O31 O32 O33 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The effect of institutional ownership on firm innovation: Evidence from Chinese listed firms (2017) Downloads
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:

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
Bibliographic data for series maintained by Haili He ().

Page updated 2020-08-07
Handle: RePEc:eee:respol:v:46:y:2017:i:9:p:1533-1551