Abstract
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 payout indicators, as the proxy variables for financialisation 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 reveals that the hypothesis of managerial myopia leading to short-termism of innovation strategy is valid only for conglomerates.
Original language | English |
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Pages (from-to) | 1197-1220 |
Number of pages | 24 |
Journal | Cambridge Journal of Economics |
Volume | 44 |
Issue number | 6 |
DOIs | |
Publication status | Published - 2020 Nov 1 |
Keywords
- Financialisation
- Innovation strategy
- Korean firms
- Managerial myopia
- Radical innovation
- Short-termism
ASJC Scopus subject areas
- Economics and Econometrics