Ownership Structure and Innovation Performance: The Mediating Mechanism of External Cooperation

55 Pages Posted: 20 Aug 2012

See all articles by Anne Wu

Anne Wu

National Chengchi University (Taipei)

Wai Fong Boh

Nanyang Technological University

Cheng-Jen Huang

Tunghai University - Department of Accounting

Date Written: August 20, 2012

Abstract

To contribute to the literature examining the influence of ownership structure and firm innovation performance, our study examines how institutional ownership and family ownership influences innovation performance of a firm, as measured by both the quantity and quality of the innovation outputs of the firm. Specifically, we examine the extent to which external cooperation with other firms mediate the relationship between ownership structure and firm innovation performance. We find that firms with high levels of institutional investors, especially foreign institutional investors, on average, have higher innovation performance, and the amount of external cooperation the firm engaged in mediates the relationship between institutional ownership and innovation performance. This research suggests that the presence of institutional investors creates implicit incentives for CEOs to exert effort toward increasing external cooperation that will further improve innovation performance.

Keywords: Ownership structure; external cooperation; innovation performance.

Suggested Citation

Wu, Anne and Boh, Wai Fong and Huang, Cheng-Jen, Ownership Structure and Innovation Performance: The Mediating Mechanism of External Cooperation (August 20, 2012). AAA 2013 Management Accounting Section (MAS) Meeting Paper. Available at SSRN: https://ssrn.com/abstract=2132308 or http://dx.doi.org/10.2139/ssrn.2132308

Anne Wu

National Chengchi University (Taipei) ( email )

No. 64, Chih-Nan Road
Section 2
Wenshan, Taipei 11623
Taiwan

Wai Fong Boh

Nanyang Technological University ( email )

S3 B2A-14 Nanyang Avenue
Singapore, 639798
Singapore

Cheng-Jen Huang (Contact Author)

Tunghai University - Department of Accounting ( email )

181, Sec. 3, Taichungkan Rd.
Taichung, Taiwan 40704
Taiwan

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