Institutional Ownership and the Nature of Corporate Innovation

Sampsa Samila, Markus Simeth, David Wehrheim

Publikation: KonferencebidragPaperForskningpeer review

Abstrakt

This paper analyzes whether institutional ownership affects the rate and nature of corporate innovation. We explicitly consider the heterogeneity of firm innovation by differentiating upstream scientific research from downstream technology development using novel scientific publication and patent indicators. Our analysis shows that greater presence of institutional owners has a negative impact on scientific research, whereas there is no effect on technology development. Consistent with a short-term orientation of institutional owners, we further show that scientific research is associated with lower short-term operating performance but higher long-term firm value. These findings support the view that capital markets in general, and institutional owners in particular, can induce myopic firm behavior.
OriginalsprogEngelsk
Publikationsdato2021
Antal sider45
StatusUdgivet - 2021
BegivenhedDRUID21 Conference - Copenhagen Business School, Frederiksberg, Danmark
Varighed: 18 okt. 202120 okt. 2021
Konferencens nummer: 42
https://conference.druid.dk/Druid/?confId=62

Konference

KonferenceDRUID21 Conference
Nummer42
LokationCopenhagen Business School
LandDanmark
ByFrederiksberg
Periode18/10/202120/10/2021
Internetadresse

Emneord

  • Institutional ownership
  • Corporate governance
  • Innovation
  • Scientific publications
  • Patents

Citationsformater