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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:

    1. Xu, Yanhui, 2023. "Common ownership along supply chain and trade credit: Evidence from China," Finance Research Letters, Elsevier, vol. 56(C).
    2. Zheng, Lei, 2023. "Heterogeneous impacts of financial inclusion on enterprise innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 55(PB).

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