Unleashing creative potential: The role of stable institutional ownership in exploratory innovation
研究美国上市公司数据发现，稳定的机构所有权能促进企业进行探索性创新，主要通过监督、信息传递和资源提供三种机制，且这一效应在机构投资者集中时更强。
This study investigates the impact of institutional ownership (IO) stability on firms’ pursuit of exploratory innovation. Utilizing a comprehensive dataset of public U.S. firms from 1990 to 2018, we provide robust evidence that firms with stable IO are more inclined to engage in exploratory innovation. Our analysis identifies three key mechanisms through which IO stability facilitates exploratory innovation: disciplinary , informational , and resource-provision channels. Considering the heterogeneous nature of institutional investors, our extended analysis indicates that the positive effect of stable IO on exploratory innovation is driven by active institutional investors, while the stability of both institutional blockholders and non-blockholders contributes to increased exploratory innovation. Furthermore, we find that the nexus between IO stability and exploratory innovation is more pronounced in firms with concentrated IO. Finally, we find that IO stability also leads to a high level of breakthrough innovation. Overall, our study highlights the critical role that stable IO plays in facilitating firms to overcome learning traps and fostering an environment conducive to exploratory activities within organizations.