If institutional investors are biopic, they should influence firms to invest in relatively less R&D.

Question

Quizplus · Accepted Answer

Institutional investors, particularly long-term investors, tend to prioritize firms that invest in long-term growth and sustainability. Research and development (R&D) is often seen as a key driver of future growth, so institutional investors are more likely to encourage firms to invest in R&D rather than less.

If Institutional Investors Are Biopic, They Should Influence Firms to Invest