Cultural distance, foreign ownership, and corporate innovation in China
Journal
Applied Economics Letters
Journal Volume
30
Journal Issue
19
Start Page
2854
End Page
2861
ISSN
1350-4851
1466-4291
Date Issued
2022-08-10
Author(s)
Abstract
This study examines the impact of heterogeneous foreign institutional investors on innovation in Chinese listed firms from 2009 to 2020. Empirical results indicate that foreign institutional investors from regions with high cultural distance are associated with a significant increase in corporate innovation of Chinese firms. Moreover, the results remain robust to alternative cultural distance measures and methods that address endogeneity. This research provides novel evidence regarding the role of foreign institutional investors in China.
Subjects
China
Cultural distance
foreign institutional ownership
innovation
SDGs
Publisher
Informa UK Limited
Type
journal article