How do ownership concentration and family control affect R&D investments? new evidence from Taiwan
This study finds a nonlinear relationship between ownership concentration and R&D investments. Specifically, ownership concentration is positively related to R&D investments at a low level of ownership concentration; the relationship becomes negative when ownership concentration is at a high level. However, the impact of ownership concentration on R&D investments is lessened in family-controlled firms; that is, family control moderates the relationship between ownership concentration and R&D investments. Overall, this study suggests that the ownership concentration's nonlinear impact on R&D investments differs between family-controlled firms and nonfamily-controlled firms. © 2018 International Review of Finance Ltd.
This article is not available at CUD collection. The version of scholarly record of this article is published in International Review of Finance (2020), available online at: https://doi.org/10.1111/irfi.12206.
Family firms, Family business, Socioemotional wealth
Ting, I. W. K., Lo, H.-C., & Kweh, Q. L. (2020). How do ownership concentration and family control affect R&D investments? New Evidence from Taiwan. International Review of Finance, 20(1), 275-291. https://doi.org/10.1111/irfi.12206