Abstract
PurposeThe purpose of this paper is to test a link between the type of corporate ownership and business innovation activities, with application to Ukrainian joint stock companies.Design/methodology/approachThe objective of the paper is achieved through conducting a series of observations of 42 of the largest companies of metallurgy and machine‐building industries for the years 1998‐2001. The theoretical scope of the paper is to identify the motives of owners in Ukraine which affect their views on innovation policy in companies which they own.FindingsThe research found that approaches of various groups of owners to the innovation policy differ and depend on the motives of their behavior at the market for corporate control. Thus, executives who owe companies, try to keep the control in their hands in order to set an abnormally high remuneration. This leads to the lack of funds to finance innovation projects because of cash flows reduction and absence of intentions to issue equity.Originality/valueThe value of this paper is that it explains an impact of ownership structure on market opportunities of companies via an impact on the business innovation parameters.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Corporate Governance: The international journal of business in society
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
