The Impact of Firm Size and Ownership Structure on Innovation Capability in Companies Listed on the Tehran Stock Exchange

Abstract

Objective: The main objective of this research is to examine the impact of firm size and ownership structure on sustained innovation capability in companies listed on the Tehran Stock Exchange.   Methodology: Given the structure of the data studied in this research, a ten-year period (from 2014 to 2023) was analyzed using the panel data method. The research data is a screened sample from the companies listed on the Tehran Stock Exchange, covering a total of 133 companies. To conduct the statistical analysis and model analysis, the EViews version 12 software was used.   Findings: The findings revealed that the estimated coefficient for ownership structure, at 0.0869 with a significance level of 0.0078, indicates a direct and significant relationship between this variable and the firm’s innovation capability. Additionally, the estimated coefficient for firm size, at 0.0674 with a significance level of 0.0021, shows a direct and significant relationship between this variable and the firm’s innovation capability.   Conclusion: It can be concluded that the larger the firm size and the more transparent the ownership structure, the greater the firm's innovation capability. Therefore, financial and economic planners should seriously consider these factors and take effective actions to promote innovation in companies and financial-economic institutions.