Ownership concentration and R&D investment: the moderating role of stock options
ISSN: 0025-1747
Article publication date: 14 September 2023
Issue publication date: 7 November 2023
Abstract
Purpose
This study aims to elaborate on how firms manage research and development (R&D) activities by examining the relationship between ownership concentration and corporate R&D investment, as well as the moderating role of stock options in this relationship.
Design/methodology/approach
The study sample comprised 354 Chinese listed firms from 2011 to 2019, and the Tobit model and the system GMM test are used to check robustness.
Findings
The results reveal that ownership concentration and R&D investment have an inverted U-shaped relationship. In the presence of stock options, this inverted U-shaped relationship is significantly weaker.
Originality/value
The results have important managerial implications for firms that aim to grant stock options and improve the impact of ownership concentration on R&D investment strategies.
Keywords
Citation
Qian, F. and Yuan, X. (2023), "Ownership concentration and R&D investment: the moderating role of stock options", Management Decision, Vol. 61 No. 11, pp. 3475-3492. https://doi.org/10.1108/MD-07-2022-0885
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited