Joint-Research Network and Corporate Innovation Investment: Based on the Empirical Evidences from Institutional Investors' Field Researches

Abstract

Abstract: Taking the A-share companies listed in Shenzhen Stock Exchange from 2013 to 2018 as the research objects, this paper analyzes the governance mechanism of the institutional investors' joint research on network and examines the relationship between the information network location of the companies under research and the innovation investment. The findings of the study show that the higher the centrality of the institutional investors' joint research on network, the greater the investment in innovation of the companies under investigation. And the above relationship is more significant in companies with worse information environment and higher agency costs. It is found through further analysis that the institutional investors'joint research network can not only improve the information transparency of the companies under survey, but also restrain the self-interested behaviors of the management and ease the financing constraints.

Key words: institutional investors' joint research on network, corporate innovation, information environment, agency cost

WANG Le, TIAN Gaoliang, FENG Hua, WU Xuan. Joint-Research Network and Corporate Innovation Investment: Based on the Empirical Evidences from Institutional Investors' Field Researches[J]. JOURNAL OF CONTEMPORARY FINANCE AND ECONOMICS, 2021, 0(2): 136-149.

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