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How does common institutional ownership affect business models innovation?

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  • Li, Junrui
  • Liu, Lei

Abstract

In the process of exploring how common institutional ownership affects the business model innovation of enterprises, this paper finds that there is a positive correlation between the two, and the path of action is to improve the dynamic capabilities of enterprises and reduce transaction costs. At the same time, the research shows that the promoting effect of common institutional ownership on the business model innovation of enterprises is more significant in the situations of non-state-owned enterprises, joint shareholding by stable institutional investors, a high level of development of the digital economy, and intense competition in the product market. This research provides guidance for enterprises to improve their corporate governance structure at the micro level, and offers references for the government to formulate regulatory policies for the capital market at the macro level.

Suggested Citation

  • Li, Junrui & Liu, Lei, 2025. "How does common institutional ownership affect business models innovation?," Finance Research Letters, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:finlet:v:84:y:2025:i:c:s1544612325010232
    DOI: 10.1016/j.frl.2025.107765
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    References listed on IDEAS

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    Cited by:

    1. Jin, Tianquan & Wang, Jinhai & Wu, Yingying, 2026. "Does firms’ rhetorical nationalism obscure stock price informativeness? Evidence from Chinese listed firms," Research in International Business and Finance, Elsevier, vol. 81(C).

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