Disclosure of R&D Knowledge With Partial Cross‐Ownership in an International Mixed Market

This paper investigates the disclosure of R&D knowledge with partial cross‐ownership in an international mixed market. Findings show that the domestic public firm fully discloses under no or unilateral foreign ownership, the domestic private firm withholds knowledge; under bilateral foreign ownership, neither discloses. Furthermore, unilateral foreign ownership is the endogenous choice for foreign and private firms. Additionally, core results hold under subsidy or tax‐subsidy policies, yet both firms withhold disclosure in a private duopoly. Consequently, bilateral foreign ownership should be avoided to preserve public disclosure incentives and safeguard social welfare.