1. Corporate ownership and firm performance: a mediating role of innovation efficiency.
- Author
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Wu, Tai-Hsi, Ting, Pei Ju Lucy, Lin, Mei-Chen, and Chang, Chia-Chi
- Subjects
STOCK ownership ,ORGANIZATIONAL performance ,TECHNOLOGICAL innovations ,DATA envelopment analysis ,INSTITUTIONAL ownership (Stocks) ,INDUSTRIAL electronics - Abstract
Using data from companies in Taiwan's electronics industry, this study examines the effect of corporate ownership on firm innovation efficiency and performance. We use a network-typed data envelopment analysis (DEA) approach to calculate firm-level innovation efficiency, which is composed of the R&D efficiency and the commercialization efficiency, respectively. We find that overall innovation efficiency is positively correlated with institutional ownership and directors' ownership. In addition, R&D efficiency is positively associated with ROA and commercialization efficiency positively correlates with Tobin's Q. R&D efficiency partially mediates the relationship between ownership-control deviation and ROA. However, commercialization efficiency plays a mediating role for institutional ownership on a firm's Tobin's Q. Our findings point to a bright side of the role of corporate governance in terms of its effects on corporate innovation and the effects of such innovation, in turn, on firm performance. [ABSTRACT FROM AUTHOR]
- Published
- 2022
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