This study analyzes the effect of control enhancing mechanisms (CEMs) on a firm's innovation activities. In the light of conflicting theoretical prophecies on the role of ultimate control, we analyze the ownership concentration by examining the cash flow and control rights deviation which embolden ultimate owners to expropriate. Empirical evidence suggests that CEMs have a negative effect on core and base innovation, although the effect is severe in intermediate aged firms and largest sized firms. These findings are robust in different specifications and have significant implications for policymakers.

中文翻译：

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坚定创新与终极控制机制：新兴市场案例

本研究分析了控制增强机制 (CEM) 对公司创新活动的影响。鉴于关于最终控制权作用的理论预言相互矛盾，我们通过考察现金流和控制权偏差来分析所有权集中度，从而使最终所有者有胆量进行征收。经验证据表明，CEM 对核心创新和基础创新具有负面影响，尽管这种影响在中年企业和大型企业中更为严重。这些发现在不同的规范中都是可靠的，并且对政策制定者具有重要意义。