Managerial myopia and short-termism of innovation strategy: Financialisation of Korean firms
- Authors
- Seo, Hwan Joo; Kang, Sung Jin; Baek, Yong Jun
- Issue Date
- 11월-2020
- Publisher
- OXFORD UNIV PRESS
- Keywords
- Managerial myopia; Financialisation; Short-termism; Innovation strategy; Radical innovation; Korean firms
- Citation
- CAMBRIDGE JOURNAL OF ECONOMICS, v.44, no.6, pp.1197 - 1220
- Indexed
- SSCI
SCOPUS
- Journal Title
- CAMBRIDGE JOURNAL OF ECONOMICS
- Volume
- 44
- Number
- 6
- Start Page
- 1197
- End Page
- 1220
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/52065
- DOI
- 10.1093/cje/beaa023
- ISSN
- 0309-166X
- 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.
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