Ownership Change and Firm Innovation: The Mediating Role of Interest Alignment

Published Online:https://doi.org/10.1287/stsc.2019.0096

References

  • Abrami RM , Kirby WC , McFarlan FW (2014) Why China can’t innovate. Harvard Bus. Rev. 92(3):107–111.Google Scholar
  • Ahuja G , Lampert CM , Tandon V (2008) Moving beyond Schumpeter: Management research on the determinants of technological innovation. Acad. Management Ann. 2(1):1–98.CrossrefGoogle Scholar
  • Alessandri TM , Seth A (2014) The effects of managerial ownership on international and business diversification: Balancing incentives and risks. Strategic Management J. 35(13):2064–2075.CrossrefGoogle Scholar
  • Allison PD , Waterman RP (2002) Fixed-effects negative binomial regression models. Sociol. Methodology 32(1):247–265.CrossrefGoogle Scholar
  • Ashenfelter O (1978) Estimating the effect of training programs on earnings. Rev. Econom. Statistics 60(1):47–57.CrossrefGoogle Scholar
  • Baron RM , Kenny DA (1986) The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. J. Personality Soc. Psych. 51(6):1173–1182.CrossrefGoogle Scholar
  • Bernstein S (2015) Does going public affect innovation? J. Finance 70(4):1365–1403.CrossrefGoogle Scholar
  • Bertrand M , Mullainathan S (2003) Enjoying the quiet life? Corporate governance and managerial preferences. J. Political Econom. 111(5):1043–1075.CrossrefGoogle Scholar
  • Bessen J (2009) NBER PDP project user documentation: Matching patent data to Compustat firms. http://www.nber.org/∼jbessen/matchdoc.pdf. Accessed May 1, 2017.Google Scholar
  • Block JH (2012) R&D investments in family and founder firms: An agency perspective. J. Bus. Venturing 27(2):248–265.CrossrefGoogle Scholar
  • Boubakri N , Cosset J-C , Saffar W (2013) The role of state and foreign owners in corporate risk-taking: Evidence from privatization. J. Financial Econom. 108(3):641–658.CrossrefGoogle Scholar
  • Cannella AA Jr , Jones CD , Withers MC (2015) Family-vs. lone-founder-controlled public corporations: Social identity theory and boards of directors. Acad. Management J. 58(2):436–459.CrossrefGoogle Scholar
  • Chen Q , Chen X , Schipper K , Xu Y , Xue J (2012) The sensitivity of corporate cash holdings to corporate governance. Rev. Financial Stud. 25(12):3610–3644.CrossrefGoogle Scholar
  • Chen VZ , Li J , Shapiro DM , Zhang X (2014) Ownership structure and innovation: An emerging market perspective. Asia Pacific J. Management 31(1):1–24.CrossrefGoogle Scholar
  • Choi SB , Lee SH , Williams C (2011) Ownership and firm innovation in a transition economy: Evidence from China. Res. Policy 40(3):441–452.CrossrefGoogle Scholar
  • Cuervo A , Villalonga B (2000) Explaining the variance in the performance effects of privatization. Acad. Management Rev. 25(3):581–590.CrossrefGoogle Scholar
  • de Jonquieres, G (2013) Who’s afraid of China’s high-tech challenge? ECIPE Policy Brief 07/2013, European Centre for International Political Economy, Brussels.Google Scholar
  • Desender KA , Aguilera RV , Crespi R , Garcia-cestona M (2013) When does ownership matter? Board characteristics and behavior. Strategic Management J. 34(7):823–842.CrossrefGoogle Scholar
  • Dharwadkar B , George G , Brandes P (2000) Privatization in emerging economies: An agency theory perspective. Acad. Management Rev. 25(3):650–669.CrossrefGoogle Scholar
  • Eberhardt M , Helmers C , Yu Z (2017) What can explain the Chinese patent explosion? Oxford Econom. Papers, 69(1):239–262.Google Scholar
  • The Economist (2012) Special report: State capitalism (January 21), 1–18.Google Scholar
  • Eisenhardt KM (1989) Agency theory: An assessment and review. Acad. Management Rev. 14(1):57–74.CrossrefGoogle Scholar
  • Estrin S , Hanousek J , Kočenda E , Svejnar J (2009) The effects of privatization and ownership in transition economies. J. Econom. Literature 47(3):699–728.CrossrefGoogle Scholar
  • Faccio M , Lang LH , Young L (2001) Dividends and expropriation. Amer. Econom. Rev. 91(1):54–78.CrossrefGoogle Scholar
  • Fang LH , Lerner L , Wu C (2017) Intellectual property rights protection, ownership, and innovation: Evidence from China. Rev. Financial Stud. 30(7):2446–2477.CrossrefGoogle Scholar
  • Firth M , Lin C , Zou H (2010) Friend or foe? The role of state and mutual fund ownership in the split share structure reform in China. J. Financial Quant. Anal. 45(3):685–706.CrossrefGoogle Scholar
  • Graham J , Harvey C , Rajgopal S (2005) The economic implications of corporate financial reporting. J. Accounting Econom. 40(1–3):3–73.CrossrefGoogle Scholar
  • Graham S , Hegde D (2015) Disclosing patents’ secrets. Science 347(6219):236–237.CrossrefGoogle Scholar
  • Hall BH (2002) The financing of research and development. Oxford Rev. Econom. Policy 18(1):35–51.CrossrefGoogle Scholar
  • Hall BH , Jaffe AB , Trajtenberg M (2001) The NBER patent citation data file: Lessons, insights and methodological tools. NBER Working Paper No. 8498, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • He Z-L , Tong TW , Zhang Y , He W (2018a) Constructing a Chinese patent database of listed firms in China: Descriptions, lessons, and insights. J. Econom. Management Strategy 27(3):579–606.Google Scholar
  • He Z-L , Tong TW , Zhang Y , He W (2018b) A database linking Chinese patents to China’s census firms. Sci. Data 5:180042.Google Scholar
  • Hitt MA , Hoskisson RE , Ireland RD (1990) Mergers and acquisitions and managerial commitment to innovation in M-form firms. Strategic Management J. 11(Summer: Special Issue: Corporate Entrepreneurship):29–47.Google Scholar
  • Holmstrom B (1989) Agency costs and innovation. J. Econom. Behav. Organ. 12(3):305–327.CrossrefGoogle Scholar
  • Hoskisson RE , Eden L , Lau CM , Wright M (2000) Strategy in emerging economies. Acad. Management J. 43(3):249–267.CrossrefGoogle Scholar
  • Hoskisson RE , Hitt MA , Johnson RA , Grossman W (2002) Conflicting voices: The effects of institutional ownership heterogeneity and internal governance on corporate innovation strategies. Acad. Management J. 45(4):697–716.CrossrefGoogle Scholar
  • Huang KG (2010) China’s innovation landscape. Science 329(5992):632–633.CrossrefGoogle Scholar
  • Imbens GW (2004) Nonparametric estimation of average treatment effects under exogeneity: A review. Rev. Econom. Statistics 86(1):4–29.CrossrefGoogle Scholar
  • Inoue CFKV , Lazzarini SG , Musacchio A (2013) Leviathan as a minority shareholder: Firm-level implications of state equity purchases. Acad. Management J. 56(6):1775–1801.CrossrefGoogle Scholar
  • Jensen MC , Meckling WH (1976) Theory of the firm: Managerial behavior, agency costs and ownership structure. J. Financial Econom. 3(4):305–360.CrossrefGoogle Scholar
  • Jiang G , Lee CM , Yue H (2010) Tunneling through intercorporate loans: The China experience. J. Financial Econom. 98(1):1–20.CrossrefGoogle Scholar
  • Judd CM , Kenny DA (1981) Process analysis: Estimating mediation in treatment evaluations. Evaluation Rev. 5(5):602–619.CrossrefGoogle Scholar
  • Karpoff JM , Rice EM (1989) Organizational form, share transferability, and firm performance: Evidence from the ANCSA corporations. J. Financial Econom. 24(1):69–105.CrossrefGoogle Scholar
  • Kim H , Kim H , Lee PM (2008) Ownership structure and the relationship between financial slack and R&D investments: Evidence from Korean firms. Organ. Sci. 19(3):404–418.LinkGoogle Scholar
  • Lanjouw JO , Schankerman M (2004) Patent quality and research productivity: Measuring innovation with multiple indicators. Econom. J. (London) 114(495):441–465.Google Scholar
  • LaPorta R , Lopez de Silanes F , Shleifer A (1998) Corporate ownership around the world. J. Finance 54(2):471–517.CrossrefGoogle Scholar
  • Lee PM , O’Neill HM (2003) Ownership structures and R&D investments of U.S. and Japanese firms: Agency and stewardship perspectives. Acad. Management J. 46(2):212–225.CrossrefGoogle Scholar
  • Levenshtein VI (1966) Binary codes capable of correcting deletions, insertions, and reversal. Soviet Phys. Doklady 10(8):707–710.Google Scholar
  • Li H , Zhou L-A (2005) Political turnover and economic performance: The incentive role of personnel control in China. J. Public Econom. 89(9–10):1743–1762.CrossrefGoogle Scholar
  • Li J , Qian C (2013) Principal-principal conflicts under weak institutions: A study of corporate takeovers in China. Strategic Management J. 34(4):498–508.CrossrefGoogle Scholar
  • Li X (2012) Behind the recent surge of Chinese patenting: An institutional view. Res. Policy 41(1):236–249.CrossrefGoogle Scholar
  • Liao L , Liu B , Wang H (2014) China’s secondary privatization: Perspectives from the split-share structure reform. J. Financial Econom. 113(3):500–518.CrossrefGoogle Scholar
  • Liegsalz J , Wagner S (2013) Patent examination at the state intellectual property office in China. Res. Policy 42(2):552–563.CrossrefGoogle Scholar
  • Lin Z , Yang H , Demirkan I (2007) The performance consequences of ambidexterity in strategic alliance formations: Empirical investigation and computational theorizing. Management Sci. 53(10):1645–1658.LinkGoogle Scholar
  • Manso G (2011) Motivating innovation. J. Finance 66(5):1823–1860.CrossrefGoogle Scholar
  • Megginson WL , Netter JM (2001) From state to market: A survey of empirical studies on privatization. J. Econom. Literature 39(2):321–389.CrossrefGoogle Scholar
  • Mengistae T , Xu LC (2004) Agency theory and executive compensation: The case of Chinese state-owned enterprises. J. Labor Econom. 22(3):615–637.CrossrefGoogle Scholar
  • Morck R , Wolfenzon D , Yeung B (2005) Corporate governance, economic entrenchment, and growth. J. Econom. Literature 43(3):655–720.CrossrefGoogle Scholar
  • Peng MW , Heath PS (1996) The growth of the firm in planned economies in transition: Institutions, organizations, and strategic choice. Acad. Management Rev. 21(2):492–528.CrossrefGoogle Scholar
  • Porter ME (1991) Capital disadvantage: America’s failing capital investment system. Harvard Bus. Rev. 70(5):65–82.Google Scholar
  • Preacher KJ , Hayes AF (2008) Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behav. Res. Methods 40(3):879–891.CrossrefGoogle Scholar
  • Qian Y (1996) Enterprise reform in China: Agency problems and political control. Econom. Transition Inst. Change 4(2):427–448.Google Scholar
  • Ramamurti R (2000) A multilevel model of privatization in emerging economies. Acad. Management Rev. 25(3):525–550.CrossrefGoogle Scholar
  • Salancik GR , Pfeffer J (1980) Effects of ownership and performance on executive tenure in U.S. corporations. Acad. Management J. 23(4):653–664.CrossrefGoogle Scholar
  • Shaver JM (2005) Testing for mediating variables in management research: Concerns, implications, and alternative strategies. J. Management 31(3):330–353.CrossrefGoogle Scholar
  • Shaver JM (2019) Causal identification through a cumulative body of research in the study of strategy and organizations. J. Management , ePub ahead of Print, April 26, https://doi.org/10.1177/0149206319846272.Google Scholar
  • Shleifer A (1998) State vs. private ownership. J. Econom. Perspect. 12(4):133–150.CrossrefGoogle Scholar
  • Shleifer A , Vishny RW (1994) Politicians and firms. Quart. J. Econom. 109(4):995–1025.CrossrefGoogle Scholar
  • Shleifer A , Vishny RW (1997) A survey of corporate governance. J. Finance 52(2):737–783.CrossrefGoogle Scholar
  • Shrout PE , Bolger N (2002) Mediation in experimental and nonexperimental studies: New procedures and recommendations. Psych. Methods 7(4):422–445.CrossrefGoogle Scholar
  • Sobel ME (1982) Asymptotic confidence intervals for indirect effects in structural equation models. Sociol. Methodology 13(1):290–312.CrossrefGoogle Scholar
  • Su Y , Xu D , Phan PH (2008) Principal-principal conflict in the governance of the Chinese public corporation. Management Organ. Rev. 4(1):17–38.CrossrefGoogle Scholar
  • Sun Q , Tong W (2003) China share issue privatization: The extent of its success. J. Financial Econom. 70(2):183–222.CrossrefGoogle Scholar
  • Thoma G , Torrisi S , Gambardella A , Guellec D , Hall BH , Harhoff D (2010) Harmonizing and combining large datasets: An application to firm-level patent and accounting data. NBER Working Paper No. 15851, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Tong JY , Zhang F (2014) More evidence that corporate R&D investment (and effective boards) can increase firm value. J. Appl. Corporate Finance 26(2):94–100.CrossrefGoogle Scholar
  • Tong TW , Zhang K , He Z-L , Zhang Y (2018) What determines the duration of patent examination in China? Res. Policy 47(3):583–591.CrossrefGoogle Scholar
  • Tsui AS , Schoonhoven CB , Meyer MW , Lau C-M , Milkovich GT (2004) Organization and management in the midst of societal transformation: The People’s Republic of China. Organ. Sci. 15(2):133–144.LinkGoogle Scholar
  • Walsh JP , Seward JK (1990) On the efficiency of internal and external corporate control mechanisms. Acad. Management Rev. 15(3):421–458.CrossrefGoogle Scholar
  • Williams R (2012) Using the margins command to estimate and interpret adjusted predictions and marginal effects. Stata J. 12(2):308–331.CrossrefGoogle Scholar
  • Wright P , Kroll M , Krug JA , Pettus M (2007) Influences of top management team incentives on firm risk taking. Strategic Management J. 28(1):81–89.CrossrefGoogle Scholar
  • Young MN , Peng MW , Ahlstrom D , Bruton GD , Jiang Y (2008) Corporate governance in emerging economies: A review of the principal–principal perspective. J. Management Stud. 45(1):196–220.CrossrefGoogle Scholar
  • Zahra SA , Ireland RD , Gutiérrez I , Hitt MA (2000) Privatization and entrepreneurial transformation: Emerging issues and a future research agenda. Acad. Management Rev. 25(3):509–524.CrossrefGoogle Scholar
  • Zhang Y , Tong TW (2019) How vertical integration affects firm innovation: Quasi-experimental evidence. Organ. Sci. Forthcoming.Google Scholar
  • Zhou KZ , Gao GY , Zhao H (2017) State ownership and firm innovation in China: An integrated view of institutional and efficiency logics. Admin. Sci. Quart. 62(2):375–404.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.