دانلود رایگان مقاله انگلیسی دیدارهای شرکت های سرمایه گذار نهادی و نوآوری های شرکت ها - الزویر 2018

Abstract

This study investigates whether and how institutional investors’ site visits affect corporate innovation. Using all Chinese firms listed in the Shenzhen Stock Exchange from 2009 to 2013, we find that institutional investors’ site visits significantly enhance corporate innovation and this effect is more pronounced for firms with a lower-quality information environment and poor corporate governance. We further find that the governance effect of site visits on innovation is consistent with career concerns rather than the quiet life hypothesis. We perform two stage-least square analysis to address possible endogeneity concerns and several robustness checks including using alternative measures of site visits and corporate innovation, alternative model specifications, and controlling for firm fixed effects. We also find that the effects of institutions’ site visits are substitutes for the effects of institutional shareholding.

Conclusions

In this study, we examine whether and how institutional investors’ site visits affect corporate innovation. Unlike previous studies focusing on institutional investors’ ownership effects, we investigate the effects of their information acquisition activities on corporate innovation by utilizing unique site visit data in China. Using all Chinese firms listed in the SZSE from 2009 to 2013, we find that institutional investors’ site visits significantly enhance corporate innovation. This positive effect is more pronounced for firms with an opaque information environment and poor corporate governance. These results indicate that improving the information environment and corporate governance quality are two important ways in which site visits affect corporate innovation. We further distinguish two hypotheses related to the governance effect of institutional investors’ corporate site visits and find that the results are consistent with career concerns rather than the quiet life hypothesis. We also find that the effects of institutions’ site visits are substitutes for the effects of institutional shareholding effect found by Aghion et al. (2013). This paper contributes to the literature in two ways. First, it directly links institutional investors’ information acquisition activities to corporate innovation and enriches the literature about institutional investors and corporate innovation, which has mainly focused on institutional investors’ ownership structure. Second, this paper extends the literature about corporate site visits by providing evidence that site visits are beneficial to the firms visited, in addition to the visitors themselves (Cheng et al., 2015, 2016).