TY  - GEN
AB  - We develop a model to study the impact of corporate governance on firm investment decisions
and industry competition. In the model, governance structure affects the distribution of shares
among short- and long-term oriented investors, the robustness of the management regarding possible
stockholder interference, and the managerial remuneration scheme. A bargaining process
between firm’s stakeholders determines the optimal allocation of financial resources between real
investments in R&D and financial investments in shares buybacks. We characterize the relation
between corporate governance and firm’s optimal investment strategy and we study how different
governance structures shape technical progress and the degree of competition over the industrial
life cycle. Numerical simulations of a calibrated set-up of the model show that pooling together
industries characterized by heterogeneous governance structures generate the well-documented
inverted-U shaped relation between competition and innovation.
DA  - 2020
DO  - 10.4119/unibi/2949405
KW  - governance structure
KW  - industry dynamics
KW  - competition
KW  - technical change
LA  - eng
PY  - 2020
SN  - 2196-2723
SP  - 32-
TI  - Governance structure, technical change, and industry competition
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29494055
Y2  - 2024-11-22T04:22:37
ER  -