Ownership Structure and R&D: An Empirical Analysis of Italian Listed Companies

PSL Quarterly Review, vol. 68 n. 275 (December 2015), 297-325

Posted: 3 Feb 2016

See all articles by Fabrizio Rossi

Fabrizio Rossi

University of Cassino and Southern Lazio

Richard J. Cebula

Armstrong Atlantic State University; Jacksonville University (Florida)

Multiple version iconThere are 2 versions of this paper

Date Written: December 12, 2015

Abstract

The objective of this study is to explore the relationship between Research and Development outlays (R&D) and firm ownership structure for public corporations listed on the Italian exchange. Using a sample of 369 firm-year observations over the period 2005-2013 and estimating with the Fixed-Effects model and then a dynamic panel data system-GMM estimator, we empirically investigate the relationship between R&D outlays and ownership structure, taking into consideration various indicator, such as ownership concentration, board ownership, and institutional investors. Our findings are of interest because they reveal a negative relationship between R&D outlays and ownership concentration. Furthermore, we find a positive relationship between R&D investments and institutional investors and a positive relationship between R&D outlays on the one hand and both firm size and firm age on the other hand. Moreover, we find a negative relationship between R&D outlays and the debt-to-capital ratio.

Keywords: Ownership structure; corporate governance; R&D outlays; agency theory

JEL Classification: G32; G34; O32

Suggested Citation

Rossi, Fabrizio and Cebula, Richard J., Ownership Structure and R&D: An Empirical Analysis of Italian Listed Companies (December 12, 2015). PSL Quarterly Review, vol. 68 n. 275 (December 2015), 297-325. Available at SSRN: https://ssrn.com/abstract=2726274

Fabrizio Rossi (Contact Author)

University of Cassino and Southern Lazio ( email )

Via G. Di Biasio, 43
Cassino, Frosinone 03043
Italy

Richard J. Cebula

Armstrong Atlantic State University ( email )

11935 Abercorn Street
Savannah, GA 31419
912-921-3781 (Phone)
912-921-3782 (Fax)

Jacksonville University (Florida) ( email )

Jacksonville, FL 32211
United States

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