Aghion, Philippe; Reenen, John Van; Zingales, Luigi - In: American Economic Review 103 (2013) 1, pp. 277-304
We find that greater institutional ownership is associated with more innovation. To explore the mechanism, we contrast … the "lazy manager" hypothesis with a model where institutional owners increase innovation incentives through reducing … career risks. The evidence favors career concerns. First, we find complementarity between institutional ownership and product …