The effect of institutional shareholders on the relationship between financial reserves and investment in corporate innovation

Subject Areas :

Ahmad Kochaki Fashki ¹ , Seyyed Abbas Borhani ² , Reza Golami-Jamkarani ³

1 - Department of Accounting, Qom Branch, Islamic Azad University, Qom, Iran.
2 - Department of Accounting, Qom Branch, Islamic Azad University, Qom, Iran
3 - Associate Professor of Accounting Department, Qom Branch, Islamic Azad University, Qom, Iran

Received: 2024-08-23 Accepted : 2024-11-04 Published : 2024-12-01

Keywords: financial reserve, institutional investor, Innovation, investment of innovative activities,

Abstract :

Goals; Developing countries are guided by the strategic fields of innovation-based development, and the innovative activities of companies are an important driving force of sustainable development in the economy. Financial reserve is a flexible resource that provides resource accumulation beyond the daily needs of business activities. How the resources provided by the financial reserve affect the investment in the innovation activities of the company and the effect of institutional shareholders on the relationship between the financial reserve and investment in the innovation of companies are the main goals of this research.. Method; This research is quantitative, descriptive, semi-experimental and library. The research methodology is correlational in terms of content and nature. Statistical analysis was done on sample information from Tehran Stock Exchange companies during the years 2017 to 2022 with 481 observations. Multivariate regression with year and industry fixed effects and Stata version 17 software have been used to test research hypotheses. Results; The data analysis showed that the financial reserve has a positive and significant effect on investment in innovation, and the shareholding of pressure-resistant institutions has a positive moderating effect on the relationship between financial reserve and investment in innovation. Innovation; While expanding the existing theoretical literature, this study modifies the factors affecting investment in organizational innovation and classifies and examines the heterogeneous characteristics of institutional investors.

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