What determines firms’ R&D intensity in business groups with cross-ownership structures?

Taeyoon Sung, Chang Yang Lee, Hyeonmi Ahn

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

This paper examines the impact of group-controlling shareholders’ interests on the R&D decision of group-affiliated firms in business groups with cross-ownership structures, especially with regard to the impact of control-ownership disparities or cash-flow rights. We show that R&D intensity across group-affiliated firms, in business groups with cross-ownership structures, is higher when control-ownership disparities are low or when group-controlling shareholders have higher cash-flow rights. Particularly in publicly listed firms, we find that the cash-flow rights of group-controlling shareholders are one of the most important determinants of the R&D intensity for group-affiliated firms.

Original languageEnglish
Pages (from-to)633-658
Number of pages26
JournalIndustry and Innovation
Volume24
Issue number6
DOIs
Publication statusPublished - 2017 Aug 18

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Management of Technology and Innovation

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