Blockholder: An innovation strength or weakness?

Abstract Because corporate managers are often evaluated on short term accounting measures, like Return On Investments, they have an incentive to behave myopically. Different theories show that the existence of large shareholders can either strengthen or mitigate myopic behavior. This research shows that the existence of these blockholders drives corporate managers to behave more myopic than when there are no blockholders in the firm based on the amount of money that firms spend on R&D. This research does not find a significant difference between inside- and outside blockholders.