Foreign Institutional Ownership and R&D Activities: Evidence from High-tech French Firms

Sami Gharbi and Hidaya Othmani

Global Business Review, 2025, vol. 26, issue 1, 39-54

Abstract: Foreign institutional investors hold over one-fifth of the total market value of the French stock market. Thus, it is important to analyse their influence on corporate investment decisions. This study investigates the impact of foreign institutional ownership on R&D activities. We examine whether these investors enhance or impede R&D investment intensity. Dynamic panel data analysis is applied to a sample of listed French high-tech firms over the period 2008–2014. Our results show that foreign institutional ownership encourages R&D investment while domestic institutional ownership dampens it. Foreign institutional ownership can act as a monitoring mechanism that reduces managerial myopia and encourages long-term and risky investment to enhance firm value.

Keywords: R&D investments; foreign institutional investors; domestic institutional investors; dynamic panel data analysis (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0972150920978125 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:globus:v:26:y:2025:i:1:p:39-54

DOI: 10.1177/0972150920978125

Access Statistics for this article

More articles in Global Business Review from International Management Institute
Bibliographic data for series maintained by SAGE Publications ().