Scandinavian Working Papers in Economics
Working Papers,
Copenhagen Business School, Department of Economics
No 1-2024: Pension Fund Investment and Firm Innovation
David Pinkus (), Dario Pozzoli () and Cédric Schneider ()
Additional contact information
David Pinkus: Department of Economics, Copenhagen Business School, Postal: Copenhagen Business School, Department of Economics, Porcelaenshaven 16 A. 1. floor, DK-2000 Frederiksberg, Denmark
Dario Pozzoli: Department of Economics, Copenhagen Business School, Postal: Copenhagen Business School, Department of Economics, Porcelaenshaven 16 A. 1. floor, DK-2000 Frederiksberg, Denmark
Cédric Schneider: Department of Economics, Copenhagen Business School, Postal: Copenhagen Business School, Department of Economics, Porcelaenshaven 16 A. 1. floor, DK-2000 Frederiksberg, Denmark
Abstract: We use a unique database on domestic pension fund investment to analyze the re-lationship between pension fund investment and innovation within Danish firms. We find a significant positive association between pension fund investment and various measures of innovation, including green technologies for climate change mitigation and adaptation. However, this relationship is much weaker in highly competitive indus-tries, suggesting that pension funds encourage innovation by monitoring and holding managers accountable. Our analysis also shows that pension funds foster innovation by providing stable long-term capital. Overall, our study highlights the important role of pension funds in driving firm innovation, particularly by reducing managerial slack and by supplying stable, long-term capital.
Keywords: Pension Fund Investment; Innovation; R&D
Language: English
67 pages, January 17, 2024
Full text files
fecb6902-f466-4d0a-b207-3df41a116063Full text
- Copenhagen Business School, Department of Economics
- Ordering Working Papers
- Home page for this series
Questions (including download problems) about the papers in this series should be directed to CBS Library Research Registration Team ()
Report other problems with accessing this service to Sune Karlsson ().
This page generated on 2024-02-05 17:10:58.