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Can fund shareholding inhibit insufficient R&D input?——Empirical evidence from Chinese listed companies
Based on the principal-agent theory and the financial management theory, this study analyzes the impact of fund shareholding on corporate insufficient R&D input, and explores the action mechanism of fund shareholding on corporate innovation activities. The results show that fund shareholding is...
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Public Library of Science
2021
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7993821/ https://www.ncbi.nlm.nih.gov/pubmed/33765071 http://dx.doi.org/10.1371/journal.pone.0248674 |
_version_ | 1783669633863122944 |
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author | Li, Xiao Liu, Gang |
author_facet | Li, Xiao Liu, Gang |
author_sort | Li, Xiao |
collection | PubMed |
description | Based on the principal-agent theory and the financial management theory, this study analyzes the impact of fund shareholding on corporate insufficient R&D input, and explores the action mechanism of fund shareholding on corporate innovation activities. The results show that fund shareholding is helpful to inhibit the insufficient R&D input. Moreover, this inhibiting effect is mainly reflected in the case of higher risk of financial failure. The further analyses show that the higher level of marketization strengthens the inhibiting effect of fund shareholding on insufficient R&D input. Finally, it is suggested that fund companies should be encouraged to hold shares of listed companies, and the proposal power of fund companies in the shareholders’ meeting should be appropriately enhanced. And it is suggested that the regulators continue to promote the development of securities investment funds, and guide fund shareholding to play an active role in external governance. Also, it is suggested that the regulators promote the process of regional marketization, to strengthen the positive effect of fund shareholding on innovation activities. |
format | Online Article Text |
id | pubmed-7993821 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2021 |
publisher | Public Library of Science |
record_format | MEDLINE/PubMed |
spelling | pubmed-79938212021-04-05 Can fund shareholding inhibit insufficient R&D input?——Empirical evidence from Chinese listed companies Li, Xiao Liu, Gang PLoS One Research Article Based on the principal-agent theory and the financial management theory, this study analyzes the impact of fund shareholding on corporate insufficient R&D input, and explores the action mechanism of fund shareholding on corporate innovation activities. The results show that fund shareholding is helpful to inhibit the insufficient R&D input. Moreover, this inhibiting effect is mainly reflected in the case of higher risk of financial failure. The further analyses show that the higher level of marketization strengthens the inhibiting effect of fund shareholding on insufficient R&D input. Finally, it is suggested that fund companies should be encouraged to hold shares of listed companies, and the proposal power of fund companies in the shareholders’ meeting should be appropriately enhanced. And it is suggested that the regulators continue to promote the development of securities investment funds, and guide fund shareholding to play an active role in external governance. Also, it is suggested that the regulators promote the process of regional marketization, to strengthen the positive effect of fund shareholding on innovation activities. Public Library of Science 2021-03-25 /pmc/articles/PMC7993821/ /pubmed/33765071 http://dx.doi.org/10.1371/journal.pone.0248674 Text en © 2021 Li, Liu http://creativecommons.org/licenses/by/4.0/ This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. |
spellingShingle | Research Article Li, Xiao Liu, Gang Can fund shareholding inhibit insufficient R&D input?——Empirical evidence from Chinese listed companies |
title | Can fund shareholding inhibit insufficient R&D input?——Empirical evidence from Chinese listed companies |
title_full | Can fund shareholding inhibit insufficient R&D input?——Empirical evidence from Chinese listed companies |
title_fullStr | Can fund shareholding inhibit insufficient R&D input?——Empirical evidence from Chinese listed companies |
title_full_unstemmed | Can fund shareholding inhibit insufficient R&D input?——Empirical evidence from Chinese listed companies |
title_short | Can fund shareholding inhibit insufficient R&D input?——Empirical evidence from Chinese listed companies |
title_sort | can fund shareholding inhibit insufficient r&d input?——empirical evidence from chinese listed companies |
topic | Research Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7993821/ https://www.ncbi.nlm.nih.gov/pubmed/33765071 http://dx.doi.org/10.1371/journal.pone.0248674 |
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