Beyer, Mila; Czarnitzki, Dirk; Kraft, Kornelius - 2011
Principle-agent theory suggests managers might under-invest into R&D for reasons of risk tied to project failure, such … as reduced remuneration and job loss. However, managers might over-invest into innovation for reasons of growth implying … higher remuneration, power and prestige. Using a sample of 1,406 Belgian firms, we find, first, that managers holding no …
