Institutional investors and R&D investments in emerging economy

Multinational firms: Evidence from India

Sandeep Yadav
Athira A
 Introduction
Non-controlling Principles
Theory: behavioral risk perspective, Diversion from agency theory: Principle-
principle conflict
PRII(MF, FII)
PSII(banks, insurance companies and lending institutions)

PSII

International R&D
Investment Investments

PRII
 Data & Methodology
• Indian Firms Data: 2010-2019(Prowess CMIE)
• Non-Financial firm
• FE/Tobit Panel Regression
Variable Measurement
Dependent
R&D Intensity Ration of R&D expenditure to sales
Independent
PSSI share held by banks, insurance firms and other non-promoters
PRII We have taken two pressure resistant institutional investors:
1. Equity share holding by Mutual Funds (MF)
2. Equity share holding by Foreign Institutional Investors (FII)
International Investments Foreign Expenditure

Control Variables Age, Size, Leverage ratio, industry, year