TY - JOUR
T1 - Do company visits by institutional investors mitigate managerial myopia in R&D investment? : evidence from China
AU - Luo, Yonggen
AU - Wu, Huiying
AU - Ying, Sammy Xiaoyan
AU - Peng, Qiuping
PY - 2022
Y1 - 2022
N2 - This study investigates the effects of company visits by institutional investors on managerial myopia about investment in research and development (R&D) in China. We find that company visits increase R&D spending. We also find that this increase is more pronounced for companies that have an entrenched chief executive officer (CEO), as indicated by longer CEO tenure and CEO duality, and for companies that face less intense market competition. The results further show that the increase in R&D spending is more pronounced for companies that have larger institutional ownership, are invested by long-term oriented institutions, are in the high-tech industry, and are state owned. These findings attest to the governance role of institutional investors.
AB - This study investigates the effects of company visits by institutional investors on managerial myopia about investment in research and development (R&D) in China. We find that company visits increase R&D spending. We also find that this increase is more pronounced for companies that have an entrenched chief executive officer (CEO), as indicated by longer CEO tenure and CEO duality, and for companies that face less intense market competition. The results further show that the increase in R&D spending is more pronounced for companies that have larger institutional ownership, are invested by long-term oriented institutions, are in the high-tech industry, and are state owned. These findings attest to the governance role of institutional investors.
UR - https://hdl.handle.net/1959.7/uws:68836
U2 - 10.1016/j.gfj.2021.100694
DO - 10.1016/j.gfj.2021.100694
M3 - Article
SN - 1044-0283
VL - 51
JO - Global Finance Journal
JF - Global Finance Journal
M1 - 100694
ER -
