Abstract:

We examine the relation between R&D investments and institutional ownership empirically. We consider the heterogeneous character of these owners. For a sample of French firms operating in high-tech sectors, we find that the effect of institutional owner R&D investment differs from positive to negative according to their types. Institutional ownership concentration and also independent institutional owners favorably influence R&D investment. Conversely, sensitive institutional owners, and mainly banks, have a negative influence. Foreign institutional ownership, contrary to domestic one, encourages R&D investment.