The effect of institutional blockholders' short-termism on firm innovation: Evidence from the Korean market

This study examines how the behavior of institutional blockholders affects investment in research and development (R&D) in Korean firms. Contrary to the monitoring view that institutional investors promote firms' R&D, the results of this study indicate that institutional blockholders have a significantly negative influence on R&D investment. More importantly, when we decompose institutional blockholdings according to institutions' national...