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Control-Ownership Disparity and R&D Investment

소유-지배 괴리도와 연구개발투자

  • Received : 2011.10.21
  • Accepted : 2011.12.13
  • Published : 2011.12.31

Abstract

Using longitudinal data of 108 firms in large business conglomerates from 2001 to 2009, this study examines the impact of controlling shareholders' control-ownership disparity on R&D investment. The study finds that control-ownership disparity is negatively related to R&D intensity. This empirical result suggests that controlling shareholders' control rights in excess of ownership rights incent controlling shareholders' expropriation for their private interests, leading to decreased R&D investment which enhances firm value in the long term.

Keywords

Control-Ownership Disparity;R&D;Controlling Shareholder

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