Domenico Tarzia, Daniel Sungyeon Kim, Srinivasan Selvam
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引用次数: 0
Abstract
We examine how controlling shareholders influence corporate innovation, using trademark registration data from Chinese listed firms between 2003 and 2020. We find that the effect of control depends on the nature of the controlling entity: in state-owned enterprises (SOEs), government control is associated with significantly lower levels of innovation output, whereas in non-SOEs, greater authoritative power of the controlling shareholder is positively associated with innovation. Our findings suggest that institutional investors may help mitigate agency problems related to innovation in SOEs, although their role is limited in non-SOEs. Additional analyses reveal that trademarks are positively linked to future firm performance and that controlling shareholder authority is positively associated with innovation efficiency. Our findings underscore the importance of ownership structure in shaping firms' innovation strategies and outcomes.
期刊介绍：
The International Review of Finance (IRF) publishes high-quality research on all aspects of financial economics, including traditional areas such as asset pricing, corporate finance, market microstructure, financial intermediation and regulation, financial econometrics, financial engineering and risk management, as well as new areas such as markets and institutions of emerging market economies, especially those in the Asia-Pacific region. In addition, the Letters Section in IRF is a premium outlet of letter-length research in all fields of finance. The length of the articles in the Letters Section is limited to a maximum of eight journal pages.
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