Institutional ownership and marketing myopic management

Chanil Boo (First Author), Chang Hyun Kim (Participant Author)

Research output: Contribution to journalJournal

5 Citations (Web of Science)


While marketing literature highlights both short- and long-term detrimental effects of marketing myopic management on firm performance, understanding of its antecedents is rather limited. This paper aims to determine if a certain level of transient institutional investor ownership influences a firm's marketing as well as research and development (R&D) investment decisions. Drawing on agency theory, the effects of institutional investor are examined using a two-stage panel logit regression with instrument variables (IV). Empirical results show that a strong presence of short-term institutional investors leads to the practice of marketing myopic management. The transient institutional investors encourage managers to invest less in marketing and R&D as an effort to artificially inflate current-term performance. We propose some policy suggestions that might be used to reduce the practice of myopic management.
Original languageEnglish
JournalApplied Economics Letters
Issue numberEarly Access
Publication statusPublished - 2020

Corresponding author email


  • R&D
  • managerial myopia
  • marketing

Indexed by

  • ABDC-B
  • SSCI


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