Financialization, Managerial Myopia and Short-termism of Innovation Strategy: The Case of the Korean Firms
- 한국사회경제학회
- 한국사회경제학회 학술대회 자료집
- 2020년 가을 학술대회 발표집
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2020.111 - 35 (35 pages)
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This study empirically examines whether managerial myopia leads to short-termism of innovation strategy using Korean firm and USPTO data covering 1980-2017. The main finding is that pay-out indicators, as the proxy variables for financialization and managerial myopia, have a negative effect on innovation, quantitatively and qualitatively. Hence, managerial myopia and short-termism of innovation strategy are related. Further, estimation by the firm’s size reveal that the hypothesis of managerial myopia leading to short-termism of innovation strategy is valid only for conglomerates.
1. Introduction
2. Literature review
3. Recent trends in financialization and innovation-related variables
4. Data and model specification
5. Conclusion and policy implications
References
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