Control-Ownership Disparity and R&D Investment

소유-지배 괴리도와 연구개발투자

  • Choi, Hyang-Mi (College of Business Administration, Seoul National University) ;
  • Cho, Young-Gon (Dept. of International Trade and Business, Sangmyung University)
  • 최향미 (서울대학교 경영학과) ;
  • 조영곤 (상명대학교 국제통상학과)
  • Received : 2011.10.21
  • Accepted : 2011.12.13
  • Published : 2011.12.31


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.


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