JOURNAL ARTICLE
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Investment in R&D and Corporate Governance
Smith, Valdemar | Madsen, Erik Strøjer | Dilling-Hansen, Mogens
Vierteljahrshefte zur Wirtschaftsforschung, Vol. 70 (2001), Iss. 2 : pp. 263–273
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1Department of Economics, Aarhus School of Business, Centre for Industrial Economics, University of Copenhagen.
2Department of Economics, Aarhus School of Business, Centre for Industrial Economics, University of Copenhagen.
3Department of Management, Centre for Industrial Economics, University of Copenhagen, University of Aarhus.
Abstract
The paper investigates the impact of ownership concentration on the likelihood that firms are involved in innovative activities or invest in research and development. We find that more dispersed ownership significantly increases the probability that a firm is engaged in innovation or invests in research and development. Moreover, the effect from ownership concentration is far more important for the incentive to innovate than the effect from product market concentration.