“…This can be understood as large shareholders claim the residual rights of the revenue generated from innovations and therefore managers are required by the large shareholders to invest in R&D activities. As Hill and Snell (1989) hypothesize, the larger and more the ownership concentrates, the more the company tends to invest in R&D. In other words, the higher the ownership concentration ratio is, the stronger the company's motivation for innovation (Holderness & Sheehan, 1988;Shleifer & Vishny, 1986;McEachern & Romeo, 1978).…”