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Ownership structures and R&D in Europe: the good institutional investors, the bad and ugly impatient shareholders

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  • Olivier Brossard
  • Stéphanie Lavigne
  • Mustafa Erdem Sakinç

Abstract

This study examines the relationship between ownership structures in large European companies and their innovative activity in terms of R&D spending. The analysis is performed on a sample of 324 large innovative companies over 8 years. Contrary to the view that institutional investors can have a negative influence on R&D spending, we report a positive impact of these investors. Our study also tests the impact of "impatient" institutional investors and provides evidence of their negative influence on R&D spending. Copyright 2013 The Author 2013. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Industrial and Corporate Change.

Volume (Year): 22 (2013)
Issue (Month): 4 (August)
Pages: 1031-1068

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Handle: RePEc:oup:indcch:v:22:y:2013:i:4:p:1031-1068

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