Abstract
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.
| Original language | English |
|---|---|
| Article number | 100694 |
| Number of pages | 25 |
| Journal | Global Finance Journal |
| Volume | 51 |
| DOIs | |
| Publication status | Published - Feb 2022 |
Bibliographical note
Publisher Copyright:© 2021 Elsevier Inc.
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 9 Industry, Innovation, and Infrastructure
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