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Common institutional ownership and R&D manipulation

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  • Wang, Shihao
  • Wang, Keyun
  • Guo, Mengting
  • Maqsood, Umer Sahil
  • Chen, Xuezhao

Abstract

We investigate the correlation between common institutional ownership and R&D manipulation by analyzing A-share listed companies in China from 2008 to 2021. Our findings indicate that common institutional ownership significantly reduces R&D manipulation through effective monitoring and governance. Further examinations of investor characteristics reveal that our findings are more pronounced in samples whose common owners are long-term investors or state-owned firms. Finally, we discover that common institutional ownership significantly improves the R&D input and total factor productivity. Overall, our research demonstrates that common institutional ownership has a beneficial impact in reducing misconduct such as R&D manipulation.

Suggested Citation

  • Wang, Shihao & Wang, Keyun & Guo, Mengting & Maqsood, Umer Sahil & Chen, Xuezhao, 2025. "Common institutional ownership and R&D manipulation," Technological Forecasting and Social Change, Elsevier, vol. 217(C).
    • Handle: RePEc:eee:tefoso:v:217:y:2025:i:c:s0040162525001982
    DOI: 10.1016/j.techfore.2025.124167
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