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Common institutional ownership and corporate innovation: Synergy of interests or grabs of interests

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  • Li, Junrui
  • Liu, Lei

Abstract

This study explores the impact of common institutional ownership on corporate innovation from two perspectives based on Chinese listed companies. The results show that common institutional ownership can exert information effect, resource effect and governance effect to significantly promote corporate innovation. Further research shows that the promotion effect is affected by institutional environment and corporate property rights, but not affected by delegated management. The study not only provides guidance for corporate governance, but also provides reference for formulation of policies related to foreign trade and capital market supervision.

Suggested Citation

  • Li, Junrui & Liu, Lei, 2023. "Common institutional ownership and corporate innovation: Synergy of interests or grabs of interests," Finance Research Letters, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322006882
    DOI: 10.1016/j.frl.2022.103512
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    References listed on IDEAS

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    Cited by:

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    2. Zhenyu Jiang & Lingshan Hu & Zongjun Wang, 2024. "Better or worse? Revealing the impact of common institutional ownership on annual report readability," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.
    3. Wang, Ailun & Hu, Shuo & Zhu, Mei & Wu, Mingxuan, 2024. "Customer contagion effects of voluntary environmental regulation: A supplier green innovation perspective," Energy Economics, Elsevier, vol. 132(C).
    4. Xu, Yanhui, 2023. "Common ownership along supply chain and trade credit: Evidence from China," Finance Research Letters, Elsevier, vol. 56(C).
    5. Xu, Runxiang & He, Chao & Li, Yanxi & Kong, Lingwen, 2024. "Peer effects of corporate green innovation: Evidence from China's listed firms," Finance Research Letters, Elsevier, vol. 61(C).
    6. Hao Ding, 2024. "Can common institutional ownership inhibit the formation of zombie firms? Evidence from China," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 38(1), pages 34-56, May.
    7. Zhu, Siyuan & Lu, Rong & Xu, Tianli & Wu, Wenbin & Chen, Yang, 2024. "Can common institutional owners inhibit bad mergers and acquisitions? Evidence from China," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 246-266.
    8. Jiong Wu & Lei Zhu & Yuheng Hu, 2024. "How does common ownership affect corporate innovation after succession in Chinese family firms? A perspective on value cocreation," Review of Managerial Science, Springer, vol. 18(12), pages 3515-3544, December.
    9. Zheng, Lei, 2023. "Heterogeneous impacts of financial inclusion on enterprise innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 55(PB).
    10. Lu, Chao & Zhu, Tianqi & Xia, Xiaoxue & Zhao, Ziying & Zhao, Yiwen, 2024. "Common institutional ownership and corporate green investment: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 1123-1149.

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