Institutional investors' shareholding, corporate governance, and corporate innovation investment

Abstract

The objective of this study is to investigate the influence of institutional investors' shareholding on corporate innovation investment, as well as to assess how this influence varies across different settings. By employing theoretical analyses and empirical tests, we discover a significant impact of institutional investor shareholding on corporate innovation investment. Moreover, we evaluate the magnitude of this impact in relation to ownership structure, analyst attention, the degree of intellectual property protection, and industry classification. Furthermore, our findings indicate that corporate governance plays a beneficial role in moderating the relationship between institutional investors' shareholding and companies' investment in innovation.