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Firm age, ultimate ownership, and R&D investments


Fan, S and Wang, C, Firm age, ultimate ownership, and R&D investments, International Review of Economics and Finance pp. 1-23. ISSN 1059-0560 (2019) [Refereed Article]

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© 2019 Published by Elsevier Inc.

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DOI: doi:10.1016/j.iref.2019.11.012


Firms’ innovation activities change over time, yet little is known about how R&D investments, as a critical input to innovation, change with firm age. Moreover, previous studies have documented that ownership, as a fundamental component of corporate governance,influences R&D investments. However, no prior study has ever investigated whether types of ownership affect the age–R&D relationship. Examining R&D investments according to firm age and ultimate ownership casts light on the dynamics of innovation. Based on a sample of publicly listed R&D performing manufacturing firms in China during 2007–2014, this study reveals that R&D investments differ according to firm age. The relationship between firm age and R&D investments is bell-shaped in general. The type of ultimate ownership moderates the age–R&D relationship, as the relationship is more dramatic among SOEs. The findings of this study contribute to ongoing literature on corporate governance and innovation from an emerging economy context.

Item Details

Item Type:Refereed Article
Keywords:firm age, R&D investment, ultimate ownership
Research Division:Economics
Research Group:Applied economics
Research Field:Financial economics
Objective Division:Commercial Services and Tourism
Objective Group:Financial services
Objective Field:Finance services
UTAS Author:Wang, C (Dr Cong Wang)
ID Code:133102
Year Published:2019
Deposited By:TSBE
Deposited On:2019-06-11
Last Modified:2020-04-24

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