Institutional Ownership and the Nature of Corporate Innovation

Sampsa Samila, Markus Simeth, David Wehrheim

Research output: Chapter in Book/Report/Conference proceedingConference abstract in proceedingsResearchpeer-review


This paper analyzes whether institutional ownership affects the nature of corporate innovation. We consider the heterogeneity of firm innovation by differentiating upstream research from downstream development using novel indicators for scientific publications and patents. Our analysis shows that institutional owners have a negative impact on upstream research, whereas there is no effect on downstream 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.
Original languageEnglish
Title of host publicationProceedings of the Eighty-second Annual Meeting of the Academy of Management
EditorsSonja Taneja
Number of pages1
Place of PublicationBriarcliff Manor, NY
PublisherAcademy of Management
Publication date2022
Publication statusPublished - 2022
EventThe Academy of Management Annual Meeting 2022: Creating a Better World Together - Seattle, United States
Duration: 5 Aug 20229 Aug 2022
Conference number: 82


ConferenceThe Academy of Management Annual Meeting 2022
Country/TerritoryUnited States
Internet address
SeriesAcademy of Management Proceedings


  • AOM annual meeting proceedings 2022
  • AOM seattle 2022

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