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Do firms with foreign residency rights controlling shareholders reduce R&D investment?

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Listed:
  • Baoyin Qiu
  • Bo Cheng
  • Hangeng Qiu
  • Kam C. Chan

Abstract

We investigate the impact of the foreign residency rights of controlling shareholders (foreign residency rights, or FRRs) on their firms' research and development (R&D) investment. The results are robust using a propensity score matching model and alternative metrics of FRRs and R&D investment. The findings suggest that firms with FRR controlling shareholders engage in less R&D investment than those without FRR controlling shareholders. Additional analysis indicates that high institutional investor ownership and a high‐quality internal control can restrain the adverse impact of FRRs on a firm's R&D investment.

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  • Baoyin Qiu & Bo Cheng & Hangeng Qiu & Kam C. Chan, 2022. "Do firms with foreign residency rights controlling shareholders reduce R&D investment?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1403-1422, July.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:5:p:1403-1422
    DOI: 10.1002/mde.3462
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    3. Ziwei Wang & Chunfeng Wang & Zhenming Fang, 2023. "Common institutional ownership and corporate misconduct," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 102-136, January.

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