Are institutional investors myopic? A time‐series study of four technology‐driven industries
Strategic Management Journal
1991
Abstract This paper examines the popular myth that managers in high‐technology industries are altering their critical R&D investments in response to the short‐term profit pressures of large institutional stockholders. The study entails an empirical examination of the relationship between R&D spending and institutional ownership over a 10‐year period for 129 firms based in four research‐intensive industries. Contrary to the view that institutional investors are having a damaging affect on R&D spending, after controlling for intervening effects the results suggest that higher levels of institutional ownership may be associated with greater R&D expenditures. A number of possible explanations for this finding are developed.
- DOI
- 10.1002/smj.4250120102
- Volume
- 12 (1)
- Pages
- 1-16
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref