Do the Type and Number of Blockholders Influence R&D Investments? New Evidence from Spain

15 Pages Posted: 1 Oct 2007

See all articles by Josep A. Tribo

Josep A. Tribo

Stevens Institute of Technology

Pascual Berrone

IESE Business School - University of Navarra

Jordi Surroca

Universidad Carlos III de Madrid - Department of Business Administration

Abstract

Using data from 3,638 Spanish firms between 1996 and 2000, this article studies the relationship between the presence of large shareholders in the ownership structure of firms and R&D investment. Consistent with our theoretical contention, our results indicate that the impact of large shareholders on the R&D investment is (1) negative when blockholders are banks, (2) positive when blockholders are non-financial corporations and (3) null when blockholders are individuals. In addition, we find a systematic negative relationship between the number of blockholders and R&D investment. Finally, we extend our study by analysing the influence that the combined effect between blockholder type and R&D investment has on the firm's economic performance. Results of this work provide relevant implications for policy makers and academic research.

Suggested Citation

Tribo Gine, Josep Antonio and Berrone, Pascual and Surroca, Jordi, Do the Type and Number of Blockholders Influence R&D Investments? New Evidence from Spain. Corporate Governance: An International Review, Vol. 15, No. 5, pp. 828-842, September 2007, Available at SSRN: https://ssrn.com/abstract=1017407 or http://dx.doi.org/10.1111/j.1467-8683.2007.00622.x

Josep Antonio Tribo Gine (Contact Author)

Stevens Institute of Technology ( email )

Hoboken, NJ 07030
United States
9292708869 (Phone)
07030 (Fax)

Pascual Berrone

IESE Business School - University of Navarra ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

HOME PAGE: http://wwwapp.iese.edu/faculty/facultyDetail_dev.asp?lang=es&prof=pb

Jordi Surroca

Universidad Carlos III de Madrid - Department of Business Administration ( email )

Calle Madrid 126
Getafe, Madrid, Madrid 28903
Spain

HOME PAGE: http://www.uc3m.es/uc3m/dpto/EMP/profesor/ijordi.htm

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