Managerial myopia and corporate innovation strategy

Yang Yu, Bingyuan Xie, Zhuo Dou and Qilong Fu

Finance Research Letters, 2024, vol. 67, issue PA

Abstract: We investigate the consequences of managerial myopia on both the quantity of innovation input and the quality of innovation outputs in China. Managerial myopia not only leads to a reduction in R&D investment but also results in a deterioration in the outputs, captured by the decrease in those substantive innovations and the degradation of patents’ knowledge breadth. Encouragingly, effective corporate governance mechanisms tend to mitigate the adverse effects of managerial myopia on innovation, but external pressures from stock market and product market may prompt myopic management to hastily engage in R&D efforts, but with further deterioration in innovation quality.

Keywords: Managerial myopia; Innovation quality; New quality productive forces; Corporate governance; Market pressure (search for similar items in EconPapers)
JEL-codes: G30 M10 O32 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324007633

DOI: 10.1016/j.frl.2024.105733

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