Innovation, institutional ownership and financial constraints

Artikel

We analyze the relationship between institutional investors, innovation and financing constraints. Using the same dataset as Aghion et al. (Am Econ Rev 103(1):277–304, 2013), we find that the effect of institutional ownership on innovation is concentrated in industries with high dependence on external finance and among firms which are a priori likely to be financially constrained. The complementarity between institutional ownership and competition, predicted by the original paper’s theory where institutional investors increase innovation through reducing career risks, disappears once this heterogeneity is taken into account. We also provide evidence that the sensitivity of R&D investment to internal funds decreases with institutional ownership.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Empirical Economics ; ISSN: 1435-8921 ; Volume: 61 ; Year: 2020 ; Issue: 3 ; Pages: 1689-1697 ; Berlin, Heidelberg: Springer

Classification and Topics

• Classification: Wirtschaft ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Firm Performance: Size, Diversification, and Scope ; Business Administration: General ; Innovation and Invention: Processes and Incentives ; Intellectual Property and Intellectual Capital ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Firm Performance: Size, Diversification, and Scope ; Business Administration: General ; Innovation and Invention: Processes and Incentives ; Intellectual Property and Intellectual Capital

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schain, Jan Philip ; Stiebale, Joel
• Event: Veröffentlichung
• (who): Springer
• (where): Berlin, Heidelberg
• (when): 2020

Further information

• DOI: doi:10.1007/s00181-020-01909-0
• Last update: 10.03.2025, 11:42 AM CET