Do company visits by institutional investors mitigate managerial myopia in R&D investment? Evidence from China

Title: Do company visits by institutional investors mitigate managerial myopia in R&D investment? Evidence from China
Creator: Luo, Yonggen; Wu, Huiying; Ying, Sammy Xiaoyan; Peng, Quiping
Relation: Global Finance Journal Vol. 51, no. 100694
Publisher Link: http://dx.doi.org/10.1016/j.gfj.2021.100694
Publisher: Elsevier
Resource Type: journal article
Date: 2022
Description: 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.
Subject: managerial myopia; R&D investment; institutional investor; company visit; China; SDG 9; Sustainable Development Goals
Identifier: http://hdl.handle.net/1959.13/1464598
Identifier: uon:47047
Identifier: ISSN:1044-0283
Language: eng
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