Abstract

Based on the data of Shenzhen A-share listed companies from 2007 to 2009, this paper makes an empirical analysis about the relationship between the holdings of institutional investors and research and development (R&D) input. We find that institutional investors as a whole have a positive correlation with R&D input, while different types of institutional investors vary in their influence on R&D input. For example, there is a close positive relationship between securities investment funds, social security funds and insurance funds and R&D input. On the contrary, R&D input has a significant effect on institutional investors as a whole, but in different types of institutional investors, we conclude that increasing R&D input can only attract some institutional investors(such as social security funds) holding stocks.

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