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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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    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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