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Ownership Structure and R&D: An Empirical Analysis of Italian listed companies

Author

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  • Fabrizio Rossi

    (University of Cassino and Southern Lazio)

  • Richard J. Cebula

    (Jacksonville University (FL))

Abstract

The objective of this study is to explore the relationship between firm ownership structure and Research and Development (R&D). Using a sample of 369 firm-year observations over the period 2005-2013, through a pooled Ordinary Least Square (OLS) robust standard error and a dynamic panel data system-GMM estimator, we investigate the relationship between ownership structure and R&D, considering various indicators, such as ownership concentration, board ownership, and institutional investors. Our findings appear of interest since a negative relationship has emerged between ownership concentration and R&D. Moreover, we find a positive relationship between R&D investments and institutional investors and a positive relationship between R&D outlays on the one hand and firm size and firm age on the other hand. Furthermore, we find a negative relationship between R&D outlays and the debt-to-capital ratio.

Suggested Citation

  • Fabrizio Rossi & Richard J. Cebula, 2015. "Ownership Structure and R&D: An Empirical Analysis of Italian listed companies," PSL Quarterly Review, Economia civile, vol. 68(275), pages 297-326.
    • Handle: RePEc:psl:pslqrr:2015:42
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    File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/13153/13035
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    Cited by:

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    2. Ruiqi, Wang & Wang, Fangjun & Xu, Luying & Yuan, Changhong, 2017. "R&D expenditures, ultimate ownership and future performance: Evidence from China," Journal of Business Research, Elsevier, vol. 71(C), pages 47-54.
    3. Yana Buravleva & Decai Tang & Brandon J. Bethel, 2021. "Incentivizing Innovation: The Causal Role of Government Subsidies on Lithium-Ion Battery Research and Development," Sustainability, MDPI, vol. 13(15), pages 1-16, July.
    4. Ahmed Hassanein & Jamal Ali Al-Khasawneh & Hany Elzahar, 2022. "R&D expenditure and managerial ownership: evidence from firms of high-vs-low R&D intensity," Journal of Financial Reporting and Accounting, Emerald Group Publishing Limited, vol. 21(3), pages 654-672, January.
    5. Marianna Succurro & Giuseppina Damiana Costanzo, 2019. "Ownership structure and firm patenting activity in Italy," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 9(2), pages 239-266, June.
    6. Carlo D’Ippoliti & Giulia Zacchia, 2017. "On the Efficiency of Italian Universities: A Comment," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(1), pages 113-123, March.

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    More about this item

    Keywords

    Ownership structure; corporate governance; R&D; agency theory;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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