Managerial ownership, entrenchment and innovation
- Publisher: Zentrum für Europäische Wirtschaftsforschung (ZEW) Mannheim
innovation | R&D investments | 330 Wirtschaft | G32 | O31 | managerial ownership | corporate governance,managerial ownership,entrenchment,innovation,R&D investments | O32 | entrenchment | corporate governance
Principle-agent theory suggests managers might under-invest into R&D for reasons of risk tied to project failure, such as reduced remuneration and job loss. However, managers might over-invest into innovation for reasons of growth implying higher remuneration, power and...