Do the type and number of blockholders influence R&D investments? New evidence from Spain

Josep A. Tribo, Pascual Berrone, Jordi Surroca

Research output: Contribution to journalArticlepeer-review

123 Scopus citations

Abstract

Using data from 3,638 Spanish firms between 1996 and 2000, this article studies the relationship between the presence of large shareholders in the ownership structure of firms and R&D investment. Consistent with our theoretical contention, our results indicate that the impact of large shareholders on the R&D investment is (1) negative when blockholders are banks, (2) positive when blockholders are non-financial corporations and (3) null when blockholders are individuals. In addition, we find a systematic negative relationship between the number of blockholders and R&D investment. Finally, we extend our study by analysing the influence that the combined effect between blockholder type and R&D investment has on the firm's economic performance. Results of this work provide relevant implications for policy makers and academic research.

Original languageEnglish
Pages (from-to)828-842
Number of pages15
JournalCorporate Governance: An International Review
Volume15
Issue number5
DOIs
StatePublished - Oct 2007

Keywords

  • Banks
  • Individual blockholders
  • Institutional blockholders
  • Non-financial blockholders
  • Ownership structure
  • R&D investment

Fingerprint

Dive into the research topics of 'Do the type and number of blockholders influence R&D investments? New evidence from Spain'. Together they form a unique fingerprint.

Cite this