How Do Ownership Concentration and Family Control Affect R&amp;D Investments? New Evidence from Taiwan

Ting, Irene Wei Kiong; Lo, Huai‐Chun; Kweh, Qian Long

doi:10.1111/irfi.12206

Cited by 6 publications

(3 citation statements)

References 42 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The findings also confirm the opposing arguments in terms of the influence of concentrated ownership in Germany on R&D. On one hand, concentrated ownership in Germany encourages firm managers to undertake longterm investments to increase the growth and stability of the firm (Belloc, 2012). Nonetheless, corporate managers are more risk-averse in the presence of concentrated ownership (Jensen and Meckling, 2012) and spend less on R&D. The results are consistent with some prior studies suggesting revealing a nonlinear influence of concentrated ownership on R&D spending (Ting et al, 2020).…”

Section: Quantile Regression Resultssupporting

confidence: 89%

R&D expenditure and managerial ownership: evidence from firms of high-vs-low R&D intensity

Hassanein

Al‐Khasawneh

Elzahar

2022

JFRA

View full text Add to dashboard Cite

Purpose Corporate managers spend on research and development (R&D) for reasons of growth and survival. However, they may be less willing to invest in R&D because of its long-term horizon, high failure rate and uncertain outcomes. This study aims to explore the extent to which managerial ownership influences R&D expenditure decisions. Design/methodology/approach Apart from the linear regression models, this study uses a semi-parametric quantile regression analysis for a sample of German non-financial firms throughout 2009–2018. Findings This study finds a nonmonotonic sensitivity of R&D spending to the level of managerial ownership over various quantiles of R&D distribution. That is, managerial ownership increases the expenditure on R&D at low R&D intensity firms. However, it decreases the expenditure on R&D at high R&D intensity firms. These results suggest the presence of a maximum level of R&D expenditure, after which owner-managers would be unwilling to spend on R&D. Practical implications The results confirm the importance of corporate ownership structure for firm R&D and innovation activities. It provides an implication for corporate policymakers to reform the corporate ownership structures to encourage corporate managers and owners to invest in R&D projects. Originality/value This study offers two distinct contributions study. First, it provides the first German shred of evidence on the nonlinear relationship between managerial ownership and R&D expenditure decisions by distinguishing between high and low R&D intensity firms. Second, unlike prior research, it uses a semi-parametric quantile regression analysis. This method is more efficient than least-squares estimators and produces robust estimators to heteroscedasticity of the residuals.

show abstract

Section: Quantile Regression Resultssupporting

confidence: 89%

R&D expenditure and managerial ownership: evidence from firms of high-vs-low R&D intensity

Hassanein

Al‐Khasawneh

Elzahar

2022

JFRA

View full text Add to dashboard Cite

show abstract

“…The main goal of any business is to enhance its performance, which will further increase shareholder value. Therefore, firms develop appropriate strategies, assemble critical resources, and develop plans of action to improve efficiency (Baik et al 2013;Ting et al 2020). These actions ultimately improve firm performance.…”

Section: Effect Of Firm Efficiency On Firm Performancementioning

confidence: 99%

“…This study employs controlling shareholdings as an independent variable. Controlling shareholdings is measured as the proportion of shares owned by a firm's five largest shareholders (Hovey et al 2003;Hsieh et al 2019;Ting et al 2020). The percentage of shares held by the largest controlling shareholders is obtained through a list of the 30 largest shareholders, which is available in the annual reports of companies.…”

Section: Independent Variable: Controlling Shareholdingsmentioning

confidence: 99%

Mediating effect of firm efficiency on the controlling shareholdings–firm performance nexus: evidence from public listed firms in Malaysia

Ting,

Asif,

Kweh

et al. 2024

Financ Innov

Self Cite

View full text Add to dashboard Cite

This study examines how controlling shareholders influence firm performance through the mediating role of firm efficiency in transforming inputs into outputs. To achieve this objective, it conducts a mediation analysis with 5,000 bootstraps on a dataset of 2,849 firm-year observations of publicly listed firms in Malaysia from 2009 to 2019. The findings reveal a positive relationship between controlling shareholdings and firm performance, with both total and indirect effects having this positive relationship. Moreover, while controlling shareholdings improve firm performance, firm efficiency partially mediates this relationship. Thus, improved firm efficiency plays a critical role in understanding the relationship between governance by controlling shareholders and enhanced firm performance. In summary, this study contributes to the existing literature by expanding our understanding of the complex relationship between controlling shareholdings, firm efficiency, and firm performance. In addition, the findings shed light on the importance of indirect channels in shaping organizational outcomes. As such, this study provides a valuable direction for future research in this area.

show abstract

Corporate governance and R&D investment: does firm size matter?

Muhammad

Migliori

Consorti

2022

Technology Analysis & Strategic Management

View full text Add to dashboard Cite

How Do Ownership Concentration and Family Control Affect R&D Investments? New Evidence from Taiwan

Cited by 6 publications

References 42 publications

R&D expenditure and managerial ownership: evidence from firms of high-vs-low R&D intensity

R&D expenditure and managerial ownership: evidence from firms of high-vs-low R&D intensity

Mediating effect of firm efficiency on the controlling shareholdings–firm performance nexus: evidence from public listed firms in Malaysia

Corporate governance and R&D investment: does firm size matter?

Contact Info

Product

Resources

About