Standing on the shoulders of giants: The innovation capability acquisition of group affiliates

Jun Shao; Junjie Wang; Junzi Isabella Zhang

doi:10.1016/j.frl.2025.107115

Standing on the shoulders of giants: The innovation capability acquisition of group affiliates

Jun Shao, Junjie Wang^*, Junzi Isabella Zhang^*

^*Corresponding author for this work

Research output: Contribution to journal › Article (Academic Journal) › peer-review

Abstract

This paper explores the influence of business group on its listed affiliates(LAFs)’ innovation capability. Based on the data of Chinese A-share business groups and their LAFs, we find that, compared to stand-alone firms, group affiliation attributes significantly enhance LAFs’ innovation capabilities. Mechanism tests show that mitigating financial constraints, technical and industry supporting improve LAFs’ innovation capabilities. Heterogeneity analysis further reveals that the group's control capability, the advanced degree of management system, the absorptive capacity, and pyramids structure exert differentiated effects on LAFs’ innovation capability.

Original language	English
Article number	107115
Number of pages	7
Journal	Finance Research Letters
Volume	78
Early online date	27 Feb 2025
DOIs	https://doi.org/10.1016/j.frl.2025.107115
Publication status	Published - 1 May 2025

Bibliographical note

Publisher Copyright:
© 2025 Published by Elsevier Inc.

Access to Document

10.1016/j.frl.2025.107115

Handle.net

Persistent link

Cite this

@article{27b1bd56425f403aa3a4d39b54017a88,

title = "Standing on the shoulders of giants: The innovation capability acquisition of group affiliates",

abstract = "This paper explores the influence of business group on its listed affiliates(LAFs){\textquoteright} innovation capability. Based on the data of Chinese A-share business groups and their LAFs, we find that, compared to stand-alone firms, group affiliation attributes significantly enhance LAFs{\textquoteright} innovation capabilities. Mechanism tests show that mitigating financial constraints, technical and industry supporting improve LAFs{\textquoteright} innovation capabilities. Heterogeneity analysis further reveals that the group's control capability, the advanced degree of management system, the absorptive capacity, and pyramids structure exert differentiated effects on LAFs{\textquoteright} innovation capability.",

author = "Jun Shao and Junjie Wang and Zhang, \{Junzi Isabella\}",

note = "Publisher Copyright: {\textcopyright} 2025 Published by Elsevier Inc.",

year = "2025",

month = may,

day = "1",

doi = "10.1016/j.frl.2025.107115",

language = "English",

volume = "78",

journal = "Finance Research Letters",

issn = "1544-6123",

publisher = "Elsevier B.V.",

}

TY - JOUR

T1 - Standing on the shoulders of giants

T2 - The innovation capability acquisition of group affiliates

AU - Shao, Jun

AU - Wang, Junjie

AU - Zhang, Junzi Isabella

PY - 2025/5/1

Y1 - 2025/5/1

N2 - This paper explores the influence of business group on its listed affiliates(LAFs)’ innovation capability. Based on the data of Chinese A-share business groups and their LAFs, we find that, compared to stand-alone firms, group affiliation attributes significantly enhance LAFs’ innovation capabilities. Mechanism tests show that mitigating financial constraints, technical and industry supporting improve LAFs’ innovation capabilities. Heterogeneity analysis further reveals that the group's control capability, the advanced degree of management system, the absorptive capacity, and pyramids structure exert differentiated effects on LAFs’ innovation capability.

AB - This paper explores the influence of business group on its listed affiliates(LAFs)’ innovation capability. Based on the data of Chinese A-share business groups and their LAFs, we find that, compared to stand-alone firms, group affiliation attributes significantly enhance LAFs’ innovation capabilities. Mechanism tests show that mitigating financial constraints, technical and industry supporting improve LAFs’ innovation capabilities. Heterogeneity analysis further reveals that the group's control capability, the advanced degree of management system, the absorptive capacity, and pyramids structure exert differentiated effects on LAFs’ innovation capability.

U2 - 10.1016/j.frl.2025.107115

DO - 10.1016/j.frl.2025.107115

M3 - Article (Academic Journal)

SN - 1544-6123

VL - 78

JO - Finance Research Letters

JF - Finance Research Letters

M1 - 107115

ER -

Standing on the shoulders of giants: The innovation capability acquisition of group affiliates

Abstract

Bibliographical note

Access to Document

Handle.net

Fingerprint

Cite this