Institutional Investor Shareholding and the Quality of Corporate Innovation: Moderating Effects Based on Internal and External Environment

Liu, Bei; Wang, Jinmin; Tong, Xinle; Zhou, Zhihua; Qiu, Zhaoxuan

Abstract

Improving the quality of enterprise innovation is a key path to implementing the innovation-driven development strategy and thus promoting high-quality economic development. Using a sample of Chinese A-share listed companies from 2011-2019, this paper empirically examines the impact of institutional investors' shareholding (IIS) on corporate innovation quality. The study finds that: (1) IIS has a significant effect on the quality of corporate innovation, and it can also improve the quality of corporate innovation by increasing corporate financial support and promoting the efficiency of corporate management. (2) Heterogeneous IIS have different impacts, with pressure-defensive IIS contributing more significantly to the quality of corporate innovations than pressure-sensitive IIS. (3) The internal and external environments play an important moderating role. External market competition incentives and supervision means play a positive moderating role, internal financing constraints and business risks play a negative moderating role.

Citation

Liu, B., Wang, J., Tong, X., Zhou, Z., & Qiu, Z. (2024). Institutional Investor Shareholding and the Quality of Corporate Innovation: Moderating Effects Based on Internal and External Environment. Managerial and Decision Economics, 45(1), 326-338. https://doi.org/10.1002/mde.4007

• Journal Article Type: Article
• Acceptance Date: Sep 1, 2023
• Online Publication Date: Sep 18, 2023
• Publication Date: 2024-01
• Deposit Date: Oct 9, 2023
• Publicly Available Date: Sep 19, 2025
• Journal: Managerial and Decision Economics
• Print ISSN: 0143-6570
• Electronic ISSN: 1099-1468
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 45
• Issue: 1
• Pages: 326-338
• DOI: https://doi.org/10.1002/mde.4007
• Keywords: Institutional Investor Shareholding; Corporate Innovation Quality; Internal and External
• Public URL: https://nottingham-repository.worktribe.com/output/25803462
• Publisher URL: https://onlinelibrary.wiley.com/doi/10.1002/mde.4007