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Ownership structure dynamics and corporate innovation capacity

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  • Han, Huanfa
  • Jiang, Tao

Abstract

This study empirically analyzes the effect of equity structure on corporates' innovation capability. The findings suggest that an optimal level of equity concentration and balance, along with an executive equity proportion within a specific range, positively contribute to fostering corporate innovation. This study also analyses heterogeneity using corporate size as a differentiator, and the results show that the negative impact of equity concentration on technological innovation is more significant in small corporates, and in large corporates, the positive impact of the degree of equity balance and executive equity on technological innovation is more significant.

Suggested Citation

  • Han, Huanfa & Jiang, Tao, 2025. "Ownership structure dynamics and corporate innovation capacity," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006828
    DOI: 10.1016/j.frl.2025.107422
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    References listed on IDEAS

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    1. Wang, Kenneth (Wei) & Zhong, Cassie (Xiaoqian), 2025. "The dark side of innovation policy uncertainty," Finance Research Letters, Elsevier, vol. 85(PC).

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