Role of ownership structure in firm R&D investment decision: Evidence from Chinese high-tech industry

This empirical study investigates the influence of institutional and managerial ownership structures on firms' R&D investment decision and also moderating influence of state ownership among their relationship. We collect the data of 244 firms for the period of 2009 to 2015 from Chinese high-tech industry. We applied the fixed effect panel data model regression to test three hypothesis of the study. Empirical results of this study show that ownership structures such as institutional and also managerial have negatively and significantly influence on firm R&D investment. Furthermore, state ownership has positive moderation role in relation of institutional ownership with firm R&D investment while no moderating effect of state ownership in relationship among managerial ownership and firm R&D spending decision. This study will helps the policy makers to understand the various ownership structures effect firms' R&D investment decisions in Chinese high-tech industry.