This paper explores the influence of foreign institutional investors on knowledge diffusion across national borders. Our empirical analyses provide robust evidence on a significant and positive relationship between foreign institutional ownership and the frequency of investee firms citing patents from the home country of the foreign institutional investors. These citations represent cross-border diffusion of innovative knowledge originating from the home countries of foreign institutional investors. Thus, our findings provide compelling evidence that foreign institutional investors facilitate global knowledge diffusion. Furthermore, our findings reveal that the influence of foreign institutional investors on knowledge dissemination is more pronounced when these investors are from countries with greater geographic, linguistic, or cultural distances from countries where the investee firms are located. In addition, we find longterm oriented foreign institutional investors or those focusing on high-tech investment have greater influence on the spread of innovative knowledge.
| Speaker: | Dr Wang Zheng Professor, City University of Hong Kong |
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