Does Common Ownership Promote Corporate Innovation?
Based on the data of listed companies jointly owned by institutional investors in the Shanghai-Shenzhen A-share market from 2007 to 2019,this paper studies and analyzes the relationship between common ownership and enterprise innovation.Empirical results show that common ownership is significantly positively correlated with corporate innovation,and that companies that do not have common institutional investors have a higher level of innovation than without common institutional investors.Common ownership mainly promotes the development of enterprise innovation behavior by alleviating the competition in the product market and reducing the degree of information asymmetry.Further,when common institutional investors are long-term institutional investors,the positive relationship between common ownership and corporate innovation is more pronounced.Compared with listed companies located in economically developed areas,common ownership mainly improves the innovation level of listed companies located in economically underdeveloped areas.The conclusion of this paper is helpful to enrich the study of the related economic consequences of common ownership and provides direct empirical evidences for the linkage between common ownership and enterprise innovation in China.
Common ownershipEnterprise innovationProduct market competitionInformation asymmetry
万方数据
维普
