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Innovation and Institutional Ownership Revisited: An Empirical Investigation with Count Data Models

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  • Susanne Berger
  • Herbert Stocker
  • Achim Zeileis

Abstract

By discriminating between a lazy manager and a career concerns hypothesis, Aghion et al. (The American Economic Review 2013, 103(1), 277-304) try to disentangle the link between innovation and institutional ownership. Citation-weighted patent counts are used as a proxy for innovation, which motivates the use of count data models. While a replication in a narrow sense confirms their empirical results which are mainly based on Poisson models, an analysis that extends the model framework by count data hurdle models does not yield the same findings. However, a remarkably stable positive correlation of citation-weighted patents and institutional ownership across all model specifications can be shown.

Suggested Citation

  • Susanne Berger & Herbert Stocker & Achim Zeileis, 2014. "Innovation and Institutional Ownership Revisited: An Empirical Investigation with Count Data Models," Working Papers 2014-24, Faculty of Economics and Statistics, Universität Innsbruck.
    • Handle: RePEc:inn:wpaper:2014-24
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    References listed on IDEAS

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    Cited by:

    1. Susanne Berger & Nathaniel Graham & Achim Zeileis, 2017. "Various Versatile Variances: An Object-Oriented Implementation of Clustered Covariances in R," Working Papers 2017-12, Faculty of Economics and Statistics, Universität Innsbruck.
    2. Unsal, Omer & Rayfield, Blake, 2019. "Institutional investors and medical innovation," The Quarterly Review of Economics and Finance, Elsevier, vol. 74(C), pages 190-205.

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    More about this item

    Keywords

    innovation; institutional ownership; count data; hurdle model; replication;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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