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Common institutional ownership and sustainable innovation

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  • Chen, Xiaoyu
  • Luo, Qi

Abstract

This study investigates whether and how common institutional ownership impacts sustainable innovation. We find that common institutional ownership exerts a positive impact on the sustainability of innovation input and output, driven by reducing financial constraints and promoting technological capability. We further observe that the positive effect of common institutional ownership is more pronounced in non-state-owned firms and firms located in regions with higher degrees of government digital attention. These findings expand our understanding of factors influencing sustainable innovation and the economic consequences of common institutional ownership.

Suggested Citation

  • Chen, Xiaoyu & Luo, Qi, 2026. "Common institutional ownership and sustainable innovation," Finance Research Letters, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:finlet:v:88:y:2026:i:c:s1544612325022743
    DOI: 10.1016/j.frl.2025.109021
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    References listed on IDEAS

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