Managing R&D in Chinese listed firms: The interactive effects of ownership concentration and corporate governance
Abstract
Ownership concentration remains a salient institutional feature among public listed firms in emerging and transitional economies. This study examines how a listed firm's ownership concentration interacts with its governance mechanisms in shaping corporate R&D investments. By analyzing panel data of Chinese listed firms between 2010 and 2012, I have three core findings. First, ownership concentration by the largest controlling shareholder negatively affects a firm's R&D intensity, but a small team of shareholders' ownership concentration plays a positive role. Second, a firm's monitoring mechanisms (measured by its sizes of the board and independent directors) and CEO stockholding positively affect the firm's R&D input. Third, CEO stockholding's positive role in promoting firm R&D is stronger in the firms with a more dispersed ownership structure. This study discloses the ways ownership concentration influences corporate governance and, in turn, affects corporate innovation.
Publication Title
Thunderbird International Business Review
Recommended Citation
Wang, J. (2021). Managing R&D in Chinese listed firms: The interactive effects of ownership concentration and corporate governance. Thunderbird International Business Review, 63 (5), 607-621. https://doi.org/10.1002/tie.22207
