CORPORATE OWNERSHIP STRUCTURE AND INNOVATION IN CANADA

Jackie Di Vito, Claude Laurin and Yves Bozec
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Jackie Di Vito: HEC Montréal - HEC Montréal
Claude Laurin: HEC Montréal - HEC Montréal
Yves Bozec: HEC Montréal - HEC Montréal

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Abstract: This study examines the link between ownership structures and R&D activities in Canada. Our main hypothesis is that highly concentrated ownership structures or the presence of controlling minority shareholders negatively affects R&D intensity of Canadian manufacturing firms. We observe a negative relationship between the concentration of voting rights in firms endowed with a controlling minority structure (CMS) and the outcome of R&D activities. Furthermore, we show that the level of separation between the voting and cash flow rights held by controlling shareholders has a positive effect on R&D intensity but a negative effect on R&D outcome. These results may suggest that CMS shareholders' incentives regarding investments in R&D are not oriented towards innovative improvement but rather towards obtaining private gains.

Keywords: Corporate ownership; controlling minority structures (CMS); entrenchment; R&D activity; innovation; Structures de propriété; structures à contrôle minoritaire (CMS); enracinement; activités de R&D (search for similar items in EconPapers)
Date: 2008-05
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00522508
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Citations: View citations in EconPapers (1)

Published in LA COMPTABILITE, LE CONTRÔLE ET L'AUDIT ENTRE CHANGEMENT ET STABILITE, May 2008, France. pp.CD Rom

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00522508

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