The Impact of Dual Class Structure and Managerial Ability on Corporate Innovation

• Main Authors: Chia-Ying Lin, 林佳瑩
• Other Authors: Wen-Hsin Hsu
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/k29g2t

碩士 === 國立臺灣大學 === 企業管理碩士專班 === 106 === This study exams the relationship among dual class structure, managerial ability and corporate innovation. The results show that dual class structure is negatively associated with innovative activities, suggesting that dual class firms are less likely than single class firms to engage in corporate innovation. The risk aversion and the control of private benefit that characterize the dual class structure can lead to weak long-term and risky innovative projects. In addition, I find that managerial ability affects positively corporate innovation. It is suggested that the higher level of managerial ability promotes higher level of corporate innovation and long-term value. Finally, investigation shows that when a better skilled manager in the context of dual class structure, his/her managerial ability will have a positive moderating effect that enhances corporate innovation, especially in the firms with relatively little deviations from control rights an ownership. Furthermore, the results show that managerial ability is positively associated with more exploratory innovations, which are outside of the firm’s knowledge base, suggesting that managers at dual class firms are not afraid of losing their controlling positions for pursuing challenging innovation activities.