JOURNAL BROWSE
Search
Advanced SearchSearch Tips
Analysis of the Determinants of Research and Development in the Pharmaceutical Industry Using Panel Study Focused Foreign and Institutional Investors
facebook(new window)  Pirnt(new window) E-mail(new window) Excel Download
 Title & Authors
Analysis of the Determinants of Research and Development in the Pharmaceutical Industry Using Panel Study Focused Foreign and Institutional Investors
Lee, Mun-Jae; Choi, Man-Kyu;
  PDF(new window)
 Abstract
Objectives : The aim of this study was to analyze the influence of foreign and institutional investors in the pharmaceutical industry on R&D investments. Methods : The empirical analysis was done for the years 2009 to 2013 which examined the period after the influence of the financial crisis. Financial statements and comments in general and internal transactions were extracted from the TS-2000 of the Korea Listed Company Association. STATA 12.0 was used as the statistical package for the panel analysis. Results : The results show that the shareholding ratio of foreigner investors turned out to have a statistically significant influence on R&D investment. No statistical significance was found in the shareholding ratio of institutional investors. Conclusions : The findings of this study, which indicate that a higher shareholding ratio of foreigner investors leads to greater R&D investment, indicate that foreign investors directly or indirectly impose pressure on a manager to make R&D investments for the long-term.
 Keywords
Pharmaceutical Industry;Research and Development;Foreign Investors;Institutional Investors;Panel Study;
 Language
Korean
 Cited by
 References
1.
C.W. Hil, S.A. Snell(1989), Effects of ownership structure and control on corporate productivity, Academy of Management Journal, Vol.32(1);25-46. crossref(new window)

2.
B.D. Baysinger, R.D. Kosnik, T.A. Turk(1991), Effects of board and ownership structure on corporate R&D strategy. Academy of Management Journal, Vol.34(1);205-214. crossref(new window)

3.
S.B. Graves, S.A. Waddock(1990), Institutional ownership and control: Implications for long-term corporate strategy, The Executive, Vol.4(1);75-83.

4.
R.E. Hoskisson, M.A. Hitt, R.A. Johnson, W. Grossman(2002), Conflicting voices: The effects of institutional ownership heterogeneity and internal governance on corporate innovation strategies. Academy of Management Journal, Vol.45(4);697-716. crossref(new window)

5.
H.H. Shin, J.J. Chang(2005), An Analysis of the Determinants of CEO Turnover: Firm Performance, Professional CEO, and Business Group, KOREAN MANAGEMENT REVIEW, Vol.34(1);289-311.

6.
E.F. Fama, M.C. Jensen(1983), Agency problems and residual claims. Journal of law and Economics, Vol.26(2);327-349. crossref(new window)

7.
T. Hoshi, A. Kashyap, D. Scharfstein(1991), Corporate structure, liquidity, and investment: Evidence from Japanese industrial groups, The Quarterly Journal of Economics, Vol.106(1);33-60. crossref(new window)

8.
D.K. Rhee, Y.K. Cho(2001), A Study of the effect of board composition on R&D investment of firms, Korean Management Review, Vol.30(4);1251-1263.

9.
C.W. Hill, S.A. Snell(1988), External control, corporate strategy, and firm performance in research-intensive industries, Strategic Management Journal, Vol.9(6);577-590. crossref(new window)

10.
T. Yoshikawa, A.A. Rasheed, D.K. Datta, J. Rosenstein(2006), Financial and product market integration: Responses of Japanese firms, Management international review. Vol.46(5):529-555. crossref(new window)

11.
R. Kochhar, P. David(1996), Institutional investors and firm innovation: A test of competing hypotheses, Strategic Management Journal, Vol.17(1):73-84. crossref(new window)

12.
M.J. Lee, M.K. Choi(2013), Analysis of Structural Relationships among Financial ratios of Regional Public Hospitals, Korean Journal of Business Administration, Vol.26(6);1517-1530.

13.
J.J. McConnell, H. Servaes(1995), Equity ownership and the two faces of debt, Journal of Financial Economics, Vol.39(1);131-157. crossref(new window)

14.
P. David, M.A. Hitt, J. Gimeno(2001), The influence of activism by institutional investors on R&D. Academy of Management Journal, Vol.44(1);144-157. crossref(new window)

15.
B. Baysinger, R.E. Hoskisson(1990), The composition of boards of directors and strategic control: Effects on corporate strategy, Academy of Management Review, Vol.15(1);72-87. crossref(new window)

16.
R.A. Connolly, M. Hirschey(2005), Firm size and the effect of R&D on Tobin's q. R&D Management, Vol.35(2);217-223. crossref(new window)

17.
W.M. Cohen, D.A. Levinthal(1990), Absorptive capacity: a new perspective on learning and innovation, Administrative science quarterly, Vol.128-152.

18.
J.H. Park, Y.M. Kim(2012), A Split Decision: Institutional Investor Types and Research and Development Investment, Journal of Strategic Management, Vol.15(3);19-42. crossref(new window)

19.
S. Douma, R. George, R. Kabir(2006), Foreign and domestic ownership, business groups, and firm performance: Evidence from a large emerging market, Strategic Management Journal, Vol.27(7);637-657. crossref(new window)

20.
K. Ramaswamy, M. Li, R. Veliyath(2002), Variations in ownership behavior and propensity to diversify: A study of the Indian corporate context, Strategic Management Journal, Vol.23(4);345-358. crossref(new window)

21.
S.M. Cha, K.S. Lee(2013), Analyzing the Efficiency of Regional Medical Resource Uses for Foreign Patient Care, Korean Journal of Health Service Management, Vol.7(3);225-235. crossref(new window)

22.
M.J. Lee, M.K. Choi(2015), The relationship between R&D investment and ownership structure in KOSDAQ pharmaceutical firms, Journal of the Korea Contents Association, Vol.15(6);445-454.