The mission of the Barney Barnett School of Business and Free Enterprise is to provide a high quality, student-oriented business educational experience to baccalaureate and master’s level students, with a focus on teaching excellence, supported by scholarship and service.
This study examines how ownership by different types of shareholders affects firm‐level research and development (R&D) investment. Integrating agency and resource dependence theories, we predict that up to a certain level, firm ownership by banks, corporations, governments, and insiders will positively relate to R&D investment. However, as ownership continues to increase, these shareholders shift their focus to personal wealth concerns, which makes owners more conservative towards R&D investment, resulting in reductions of R&D investment. Applying an institution‐based view, we expect the norms associated with performance‐based national cultures to moderate the curvilinear relationships between ownership and R&D investment. We test our hypotheses with a sample of 11,262 firms from 35 countries and find that ownership by banks, corporations, and governments has a curvilinear inverted U‐shaped relationship with R&D investment. Further, operating in a performance‐based culture enhances the effects for corporation and government ownership. Our findings contribute unique insights about what drives the important strategic activity of investing in R&D. [ABSTRACT FROM AUTHOR]
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