Institutional Investor, Economic Policy Uncertainty, and Innovation Investment: Evidence from China

DSpace Repository

Show simple item record Dou, Zhenjiang Wei, Lei Wang, Jingyi
dc.contributor.other Ekonomická fakulta cs 2021-03-16T10:51:24Z 2021-03-16T10:51:24Z
dc.identifier.issn 1212-3609
dc.description.abstract As a participator in corporate investment decision-making, the institutional investor is directly related to the corporate innovation investment. However, the economic policy uncertainty is aggravated by problems, such as economic slump and trade friction. Thus, institutional investors are not optimistic about the prospects of innovation investment. To explore the influence of institutional investors on corporate innovation investment from the perspective of economic policy uncertainty, using the 2010–2018 panel data in China and the fixed effect model, the influences of institutional investors on innovation investment and the moderating effects of the economic policy uncertainty were analyzed. Results show that institutional investors facilitate corporate innovation investment. Moreover, the increasing economic policy uncertainties repress the promoting effect of institutional investors on innovation investment. Furthermore, the institutional investors boost the corporate innovation investment by improving the internal control and relieving the financing constraints. For private companies, new and high-tech companies, the promoting effect of institutional investors on the corporate innovation investment is inhibited by the economic policy uncertainty to a small extent. For the listed companies located in areas with a high level of investor protection and intellectual property protection, the economic policy uncertainty has a minimal influence on the institutional investors and corporate innovation investment. The conclusions obtained from this study provide empirical evidence for giving full play to the role played by institutional investors in corporate innovative development. The conclusions also reveal, from the macroscopic level, that the consistency and stability of governmental economic policies have important effects on corporate development. en
dc.format text
dc.language.iso en
dc.publisher Technická Univerzita v Liberci cs
dc.publisher Technical university of Liberec, Czech Republic en
dc.relation.ispartof Ekonomie a Management cs
dc.relation.ispartof Economics and Management en
dc.relation.isbasedon Aggarwal, R., Erel, I., Ferreira, M., & Matos, P. (2011). Does governance travel around the world? Evidence from institutional investors. Journal of Financial Economics, 100(1), 154–181. jfineco.2010.10.018
dc.relation.isbasedon Aghion, P., Reenen, J. V., & Zingales, L. (2013). Innovation and institutional ownership. American Economic Review, 103(1), 277–304.
dc.relation.isbasedon Agudelo, M. A. L., Jóhannsdóttir, L., & Davídsdóttir, B. (2019). A literature review of the history and evolution of corporate social responsibility. International Journal of Corporate Social Responsibility, 4(1), 1–23. https://doi. org/10.1186/s40991-018-0039-y
dc.relation.isbasedon Almazan, A., Hartzell, J. C., & Starks, L. T. (2005). Active Institutional Shareholders and Costs of Monitoring: Evidence from Executive Compensation. Financial Management, 34(4), 5–34. 053X.2005.tb00116.x
dc.relation.isbasedon Amel-Zadeh, A., & Serafeim, G. (2018). Why and How Investors Use ESG Information: Evidence from a Global Survey. Financial Analysts Journal, 74(3), 87–103. https://doi. org/10.2469/faj.v74.n3.2
dc.relation.isbasedon An, H., & Zhang, T. (2013). Stock price synchronicity, crash risk and institutional investors. Journal of Corporate Finance, 21(C), 1–15. jcorpfin.2013.01.001
dc.relation.isbasedon Andrlova, B., & Korytarova, J. (2020). Management of business risk hedging in construction contracts from the perspective of public investors. Technical Journal, 14(2), 168–173. 20200515215502
dc.relation.isbasedon Baker, S. R., Bloom, N., & Davis, S. J. (2016). Measuring Economic Policy Uncertainty. The Quarterly Journal of Economics, 131(4), 1593–1636.
dc.relation.isbasedon Barber, B. M., & Odean, T. (2008). All That Glitters: The Effect of Attention and News on the Buying Behavior of Individual and Institutional Investors. The Review of Financial Studies, 21(2), 785–818.
dc.relation.isbasedon Bhattacharya, U., Hsu, P.-H., Tian, X., & Xu, Y. (2017). What Affects Innovation More: Policy or Policy Uncertainty? Journal of Financial and Quantitative Analysis, 52(5), 1869–1901.
dc.relation.isbasedon Bloom, N., Bond, S., & Reenen, J. V. (2007). Uncertainty and Investment Dynamics. The Review of Economic Studies, 74(2), 391–415. 937X.2007.00426.x
dc.relation.isbasedon Boone, A. L., & White, J. T. (2015). The effect of institutional ownership on firm transparency and information production. Journal of Financial Economics, 117(3), 508–533. https://doi. org/10.1016/j.jfineco.2015.05.008
dc.relation.isbasedon Borochin, P., & Yang, J. (2017). The effects of institutional investor objectives on firm valuation and governance. Journal of Financial Economics, 126(1), 171–199. https://doi. org/10.1016/j.jfineco.2017.06.013
dc.relation.isbasedon Brown, J. R., & Petersen, B. C. (2011). Cash holdings and R&D smoothing. Journal of Corporate Finance, 17(3), 694–709. https://doi. org/10.1016/j.jcorpfin.2010.01.003
dc.relation.isbasedon Bushee, B. J., & Goodman, T. H. (2007). Which Institutional Investors Trade Based on Private Information About Earnings and Returns? Journal of Accounting Research, 45(2), 289–321. 679X.2007.00234.x
dc.relation.isbasedon Bushee, B. J., Carter, M. E., & Gerakos, J. (2014). Institutional Investor Preferences for Corporate Governance Mechanisms. Journal of Management Accounting Research, 26(2), 123–149.
dc.relation.isbasedon Callen, J. L., & Fang, X.-H. (2013). Institutional investor stability and crash risk: Monitoring versus short-termism? Journal of Banking & Finance, 37(8), 3047–3063.
dc.relation.isbasedon Chemmanur, T. J., He, S., & Hu, G. (2009). The role of institutional investors in seasoned equity offerings. Journal of Financial Economics, 94(3), 384–411. https://doi. org/10.1016/j.jfineco.2008.12.011
dc.relation.isbasedon Chen, X., Harford, J., & Li, K. (2007). Monitoring: Which institutions matter? Journal of Financial Economics, 86(2), 279–305.
dc.relation.isbasedon Connelly, B. L., Hoskisson, R. E., Tihanyi, L., & Certo, S. T. (2010). Ownership as a Form of Corporate Governance. Journal of Management Studies, 47(8), 1561–1589. https://doi. org/10.1111/j.1467-6486.2010.00929.x
dc.relation.isbasedon Crane, A. D., Koch, A., & Michenaud, S. (2019). Institutional investor cliques and governance. Journal of Financial Economics, 133(1), 175–197. jfineco.2018.11.012
dc.relation.isbasedon Dierksmeier, C., & Seele, P. (2020). Blockchain and business ethics. Business Ethics: A European Review, 29(2), 348–359.
dc.relation.isbasedon Fan, H. F. (2018). Heterogeneous Institutional Investors, External Financing Constraints and R&D Investment. Jinan Journal (Philosophy & Social Science Edition), 40(11), 91–102. 5072.2018.11.009
dc.relation.isbasedon Ferreira, M. A., & Matos, P. (2008). The colors of investors’ money: The role of institutional investors around the world. Journal of Financial Economics, 88(3), 499–533.
dc.relation.isbasedon Filatotchev, I., Poulsen, A., & Bell, R. G. (2019). Corporate governance of a multinational enterprise: Firm, industry and institutional perspectives. Journal of Corporate Finance, 57(C), 1–8. jcorpfin.2018.02.004
dc.relation.isbasedon Gao, Y. Q., Wang, Y. L., Wang, L., & Zhang, M. H. (2020). Who really cares about the environment? CEOs’ military service experience and firms’ investment in environmental protection. Business Ethics: A European Review, 30(1), 4–18. https://doi. org/10.1111/beer.12320
dc.relation.isbasedon Gillan, S., & Starks, L. T. (2003). Corporate Governance, Corporate Ownership, and the Role of Institutional Investors: A Global Perspective. Journal of Applied Finance, 13(2), 4–22. Retrieved from abstract=480983
dc.relation.isbasedon Gu, Y. W., Filatotchev, I., Bell, R. G., & Rasheed, A. R. (2019). Liability of foreignness in capital markets: Institutional distance and the cost of debt. Journal of Corporate Finance, 57(C), 142–160. jcorpfin.2017.10.014
dc.relation.isbasedon Guido, G., Amatulli, C., & Sestino, A. (2020). Elderly consumers and financial choices: A systematic review. Journal of Financial Services Marketing, 25(4), 76–85. https://doi. org/10.1057/s41264-020-00077-7
dc.relation.isbasedon Gulen, H., & Ion, M. (2016). Policy Uncertainty and Corporate Investment. The Review of Financial Studies, 29(3), 523–564.
dc.relation.isbasedon Hadlock, C. J., & Pierce, J. R. (2010). New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index. The Review of Financial Studies, 23(5), 1909–1940.
dc.relation.isbasedon Hartzell, J. C., & Starks, L. T. (2003). Institutional Investors and Executive Compensation. Journal of Finance, 58(6), 2351–2374. 6261.2003.00608.x
dc.relation.isbasedon Hu, A. G. Z., & Png, I. P. L. (2013). Patent rights and economic growth: Evidence from cross-country panels of manufacturing industries. Oxford Economic Papers, 65(3), 675–698.
dc.relation.isbasedon Hoque, M. E., Kabir Hassan, M., Hashim, N. M. H. N., & Zaher, T. (2019). Factors affecting Islamic banking behavioral intention: the moderating effects of customer marketing practices and financial considerations. Journal of Financial Services Marketing, 24(5), 44–58.
dc.relation.isbasedon Jahnke, P. (2019). Ownership concentration and institutional investors’ governance through voice and exit. Business and Politics, 21(3), 327–350.
dc.relation.isbasedon Ju, X. S., Lu, D., & Yu, Y. H. (2013). Financing constraints, working capital management and the persistence of firm innovation. Economic Research Journal, 1, 4–16.
dc.relation.isbasedon Kondić, Ž., & Knok, Ž. (2020). Risk Management in the Higher Education Quality Insurance System. Technical Journal, 14(1), 46– 54.
dc.relation.isbasedon Kong, D. M., Liu, S. S., & Tan, W. Q. (2019). Analyst recommendations and different investors’ trading. Management World, 1, 167–178. 1235/f.2019.0012
dc.relation.isbasedon La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2000). Investor protection and corporate governance. Journal of Financial Economics, 58(1–2), 3–27. https://doi. org/10.1016/S0304-405X(00)00065-9
dc.relation.isbasedon Li, L., & Han, L. Y. (2014). Value investing or value creating? A comparative study between foreign and domestic institutional investors. China Economic (Quarterly), 1, 351–372.
dc.relation.isbasedon Li, W. A., & Li, B. (2008). An Empirical Study on the Effect of Institutional Investors Participating in Corporate Governance: Based on the Data of 2004–2006 CCGI~(NK). Nankai Business Review, 1, 4–14.
dc.relation.isbasedon Liang, S. K. (2018). Will institutional investor ownership affect companies’ stickiness of cost? Management World, 12, 133–148. https://doi. org/10.19744/j.cnki.11-1235/f.2018.0039
dc.relation.isbasedon Lin, C., Yue, M., & Xuan, Y. H. (2011). Ownership structure and financial constraints: Evidence from a structural estimation. Journal of Financial Economics, 102(2), 416–431.
dc.relation.isbasedon Lu, J. T., Ren, L. C., He, Y. F., Lin, W. F., & Streimikis, J. (2019a). Linking corporate social responsibility with reputation and brand of the firm. Amfiteatru Economic, 21(51), 442–460.
dc.relation.isbasedon Lu, J. T., Ren, L. C., He, Y. F., Lin, W. F., & Streimikis, J. (2019b). Policies to Promote Corporate Social Responsibility (CSR) and Assessment of CSR Impacts. E&M Economics and Management, 22(1), 82–98. https://doi. org/10.15240/tul/001/2019-1-006
dc.relation.isbasedon Lu, J. T., Ren, L. C., Qiao, J. Y., Lin, W. F., & He, Y. F. (2019c). Female Executives and Corporate Social Responsibility Performance: A Dual Perspective of Differences in Institutional Environment and Heterogeneity of Foreign Experience. Transformations in Business & Economics, 18(2), 174–196.
dc.relation.isbasedon Lu, Y., Zhu, Y. J., & Hu, X. Y. (2012). Institutional Shareholding and Corporate Fraud: Evidence from China. Nankai Business Review, 15(1), 13–23. issn.1008-3448.2012.01.003
dc.relation.isbasedon McCahery, J. A., Sautner, Z., & Starks, L. T. (2016). Behind the Scenes: The Corporate Governance Preferences of Institutional Investors. Journal of Finance, 71(6), 2905–2932.
dc.relation.isbasedon Nofsinger, J. R., Sulaeman, J., & Varma, A. (2019). Institutional investors and corporate social responsibility. Journal of Corporate Finance, 58, 700–725. jcorpfin.2019.07.012
dc.relation.isbasedon Pan, X., Chen, X. J., Guo, H. J., & Zhang, Y. C. (2020). One size doesn’t fit all: How institutional complexity within the state shapes firms’ environmental innovation. Business Ethics: A European Review, 29(3), 438–450.
dc.relation.isbasedon Panousi, V., & Papanikolaou, D. (2012). Investment, Idiosyncratic Risk, and Ownership. The Journal of Finance, 67(3), 1113–1148. 6261.2012.01743.x
dc.relation.isbasedon Pástor, L., & Veronesi, P. (2013). Political uncertainty and risk premia. Journal of Financial Economics, 110(3), 520–545.
dc.relation.isbasedon Rao, P. G., Yue, H., & Jiang, G. H. (2017). Economic policy uncertainty and firms’ investment. The Journal of World Economy, 2, 27–51.
dc.relation.isbasedon Schmalz, M. C. (2018). Common-ownership Concentration and Corporate Conduct. Annual Review of Financial Economics, 10, 413–448. 110217-022747
dc.relation.isbasedon Shen, G. B., & Huang, S. J. (2019). The impact of city-level intellectual property protection on foreign capital entry into Chinese enterprises. Finance & Trade Economics, 12, 143–157. 1166/f.20191204.003
dc.relation.isbasedon Wen, Z. L., Chang, L., & Hou, J. T. (2006). Mediated Moderator and Moderated Mediator. Acta Psychologica Sinica, 38(3), 448–452. I03/448
dc.relation.isbasedon Whited, T. M., & Wu, G. J. (2006). Financial Constraints Risk. The Review of Financial Studies, 19(2), 531–559. https://doi. org/10.1093/rfs/hhj012
dc.relation.isbasedon Wondirad, H. A. (2020). Competition and microfinance institutions’ performance: evidence from India. International Journal of Corporate Social Responsibility, 5(1), 1–19.
dc.relation.isbasedon Xie, W. M., & Fang, H. X. (2011). Financial development, financing constrains and firms’ R&D investment. Journal of Financial Research, 5, 171–183.
dc.relation.isbasedon Xu, N., Zhang, Y., & Xu, X. Y. (2019). Can managerial ability protect the interests of minority shareholders in subsidiaries: A perspective of parent-subsidiary’s “Two-way Governance”. China Industrial Economics, 11, 155–173. ciejournal.2019.11.009
dc.relation.isbasedon Yi, Z. H., Jiang, F. X., & Qin, Y. H. (2010). The market competition in products, the corporate governance and the quality of information disclosure. Management World, 1, 133–141. 1235/f.2010.01.015
dc.rights CC BY-NC
dc.subject economic policy uncertainty en
dc.subject institutional investor en
dc.subject innovation investment en
dc.subject.classification D21
dc.subject.classification G34
dc.subject.classification M21
dc.title Institutional Investor, Economic Policy Uncertainty, and Innovation Investment: Evidence from China en
dc.type Article en
dc.publisher.abbreviation TUL
dc.relation.isrefereed true
dc.identifier.doi 10.15240/tul/001/2021-1-001
dc.identifier.eissn 2336-5604
local.relation.volume 24
local.relation.issue 1
local.relation.abbreviation E+M cs
local.relation.abbreviation E&M en
local.faculty Faculty of Economics
local.citation.spage 4
local.citation.epage 20
local.access open
local.fulltext yes
local.filename EM_1_2021_1

Files in this item

This item appears in the following Collection(s)

Show simple item record

Search DSpace

Advanced Search


My Account