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Replication data for: Innovation and Institutional Ownership

Resource Type
  • Aghion, Philippe
  • Van Reenen, John
  • Zingales, Luigi
Publication Date
  • Abstract

    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 market competition, whereas the lazy manager hypothesis predicts substitution. Second, CEOs are less likely to be fired in the face of profit downturns when institutional ownership is higher. Finally, using instrumental variables, policy changes, and disaggregating by type of institutional owner, we argue that the effect of institutions on innovation is causal. (JEL G23, G32, L25, M10, O31, O34)
  • Is supplement to
    DOI: 10.1257/aer.103.1.277 (Text)
  • Aghion, Philippe, John Van Reenen, and Luigi Zingales. “Innovation and Institutional Ownership.” American Economic Review 103, no. 1 (February 2013): 277–304.
    • ID: 10.1257/aer.103.1.277 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12

Aghion, Philippe; Van Reenen, John; Zingales, Luigi (2013): Replication data for: Innovation and Institutional Ownership. Version: 1. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.