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...

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Bibliographic Details
Main Authors: Irene, Wei Kiong Ting, Lo, Huai-Chun, Kweh, Qian Long
Format: Article
Language:English
Published: John Wiley & Sons Ltd. 2018
Subjects:
Online Access:http://umpir.ump.edu.my/id/eprint/23340/
http://umpir.ump.edu.my/id/eprint/23340/
http://umpir.ump.edu.my/id/eprint/23340/1/How%20Do%20Ownership%20Concentration%20and%20Family%20Control%20Affect.pdf
Description
Summary: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 non-family-controlled firms.