Ownership Structure and R&D: An Empirical Analysis of Italian listed companies
The objective of this study is to explore the relationship between research and development outlays (R&D) and firm ownership structure for the public corporations listed on the Italian stock exchange. There is literature on the impact of corporate governance on firms’ innovation, and specificall...
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| Format: | Article |
| Language: | English |
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Associazione Economia civile
2016-01-01
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| Series: | PSL Quarterly Review |
| Subjects: | |
| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/13153 |
| _version_ | 1811172546932899840 |
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| author | Fabrizio Rossi Richard J. Cebula |
| author_facet | Fabrizio Rossi Richard J. Cebula |
| author_sort | Fabrizio Rossi |
| collection | DOAJ |
| description | The objective of this study is to explore the relationship between research and development outlays (R&D) and firm ownership structure for the public corporations listed on the Italian stock exchange. There is literature on the impact of corporate governance on firms’ innovation, and specifically on the relation between ownership structures and innovation. However, related empirical research is still in its infancy, with most contributions focused on the USA. Using a sample of 369 firm-year observations over the period 2005-2013, we investigate the relationship between R&D outlays and ownership structure estimating both a the fixed-effects panel model and a dynamic panel data system-GMM model. We consider various indicators of corporate governance, such as ownership concentration, board ownership, and institutional investors. Our findings reveal a negative relationship between R&D outlays and ownership concentration. Furthermore, we find a positive relationship between R&D investments and institutional investors, and a positive relationship between R&D outlays on the one hand and both firm size and firm age on the other hand. Finally, we find a negative relationship between R&D outlays and the debt-to-capital ratio.
JEL codes: G32; G34; O32
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| first_indexed | 2024-04-10T17:32:01Z |
| format | Article |
| id | doaj.art-0788ecf5f9e345ad9f8b219f9cb60781 |
| institution | Directory Open Access Journal |
| issn | 2037-3635 2037-3643 |
| language | English |
| last_indexed | 2024-04-10T17:32:01Z |
| publishDate | 2016-01-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj.art-0788ecf5f9e345ad9f8b219f9cb607812023-02-03T16:43:20ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432016-01-016827510.13133/2037-3643/13153Ownership Structure and R&D: An Empirical Analysis of Italian listed companiesFabrizio Rossi0Richard J. Cebula1University of Cassino and Southern LazioJacksonville University (FL)The objective of this study is to explore the relationship between research and development outlays (R&D) and firm ownership structure for the public corporations listed on the Italian stock exchange. There is literature on the impact of corporate governance on firms’ innovation, and specifically on the relation between ownership structures and innovation. However, related empirical research is still in its infancy, with most contributions focused on the USA. Using a sample of 369 firm-year observations over the period 2005-2013, we investigate the relationship between R&D outlays and ownership structure estimating both a the fixed-effects panel model and a dynamic panel data system-GMM model. We consider various indicators of corporate governance, such as ownership concentration, board ownership, and institutional investors. Our findings reveal a negative relationship between R&D outlays and ownership concentration. Furthermore, we find a positive relationship between R&D investments and institutional investors, and a positive relationship between R&D outlays on the one hand and both firm size and firm age on the other hand. Finally, we find a negative relationship between R&D outlays and the debt-to-capital ratio. JEL codes: G32; G34; O32 https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/13153Ownership structurecorporate governanceR&Dagency theory |
| spellingShingle | Fabrizio Rossi Richard J. Cebula Ownership Structure and R&D: An Empirical Analysis of Italian listed companies PSL Quarterly Review Ownership structure corporate governance R&D agency theory |
| title | Ownership Structure and R&D: An Empirical Analysis of Italian listed companies |
| title_full | Ownership Structure and R&D: An Empirical Analysis of Italian listed companies |
| title_fullStr | Ownership Structure and R&D: An Empirical Analysis of Italian listed companies |
| title_full_unstemmed | Ownership Structure and R&D: An Empirical Analysis of Italian listed companies |
| title_short | Ownership Structure and R&D: An Empirical Analysis of Italian listed companies |
| title_sort | ownership structure and r d an empirical analysis of italian listed companies |
| topic | Ownership structure corporate governance R&D agency theory |
| url | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/13153 |
| work_keys_str_mv | AT fabriziorossi ownershipstructureandrdanempiricalanalysisofitalianlistedcompanies AT richardjcebula ownershipstructureandrdanempiricalanalysisofitalianlistedcompanies |