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Shareholding by industry peers, firm size, and innovation quality

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  • Deng, Yumiao
  • Ding, Yongling
  • Li, Chen
  • Ma, Sichao

Abstract

Corporate technological innovation is a critical driver of economic growth and competitive advantage. The ownership structure significantly influences corporate innovation strategies and outcomes. Based on a sample of listed companies from 2016 to 2022, this paper investigates the impact of industry peer shareholding on the innovation quality. Empirical results indicate that a higher proportion of shareholding by industry peers is associated with higher innovation quality, reflected in elevated average patent citation rates, particularly among small firms. Mechanism analysis suggests that peer shareholding significantly reduces the R&D investment volatility and improves the diversity of R&D activities, thus promoting innovation activities of small firms.

Suggested Citation

  • Deng, Yumiao & Ding, Yongling & Li, Chen & Ma, Sichao, 2025. "Shareholding by industry peers, firm size, and innovation quality," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006063
    DOI: 10.1016/j.frl.2025.107343
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    References listed on IDEAS

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