Data for common institutional ownership and innovation

Our sample consists of annual data from firms listed on the A-share markets of the Shanghai and Shenzhen Stock Exchanges in China, covering the period from 2003 to 2022. We gather the necessary data on listed firm from two databases: Chinese Innovation Research Database (CIRD) for firms’ innovation, China Stock Market & Accounting Research Database (CSMAR) for common ownership. CIRD not only includes patent data filed or granted to different entities, distinguishing between three types of patents—invention, utility model, and design—but also provides key information such as the nature of applications (independent or joint), classification numbers, and patent statistics. CSMAR database is positioned as a research-oriented precision database, referring to the standards of authoritative databases such as CRSP and COMPUSTAT, with the aim of researching and quantifying investment analysis. We match the innovation data to the financial data for each firm, and we exclude financial listed companies, exclude ST and * ST listed companies and delete samples with missing data. To avoid extreme value interference, we winsorize all continuous variables at the 1% level. With these filters, our final sample of 48,956 firm-year observations for 4957 firms.