- Volume 12 Issue 12
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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)
- 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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