Costly Trading, Managerial Myopia, and Long-Term Investment

2005 ◽  
Author(s):  
Leonard L. Lundstrum ◽  
Craig W. Holden
Keyword(s):  
Managerial Myopia

Does Long-Term Earnings Guidance Mitigate Managerial Myopia?

2015 ◽  
Author(s):  
Andrew C. Call ◽  
Shuping Chen ◽  
Adam M. Esplin ◽  
Bin Miao
Keyword(s):  
Earnings Guidance ◽  
Managerial Myopia

The sustainable executive: antecedents of managerial long-term orientation

2017 ◽  
Vol 8 (2) ◽  
pp. 179-195 ◽  
Author(s):  
Dietmar Sternad ◽  
James J. Kennelly
Keyword(s):  
Organizational Level ◽  
Temporal Orientation ◽  
Managerial Behavior ◽  
Content Type ◽  
Long Run ◽  
Managerial Myopia ◽  
Decision Making Processes ◽  
Sustainable Organizations ◽  
Short Termism

Purpose The purpose of this paper is to explain how managers incorporate long-term thinking in their decision-making processes as an antipode to a widely criticized managerial short-termism. For this purpose, the authors present a model of the influence of institutional, cultural and individual temporal factors on managerial long-term orientation (LTO). Design/methodology/approach This conceptual paper is based on a multidisciplinary review of the literature on the causes of managerial LTO. Findings It is proposed that managerial LTO is influenced by cultural and institutional factors on both a societal and an organizational level, as well as by managers’ individual temporal predispositions and the strengths of relational commitments with different stakeholder groups. It is further expected that managerial LTO has an influence on sustainability-related managerial behavior. Practical implications As the presented model reveals the main factors that orient managers toward the long run in their decisions, it can also be used as a framework to evaluate policies to curb managerial myopia on both an organizational and a societal level. Social implications As sustainability is intrinsically linked with the ability to think and act in the long term, understanding the factors that influence managerial LTO can also contribute to building more sustainable organizations. Originality/value One of the main contributions of this paper is that it highlights the link between reciprocal relationships and LTO, an aspect that has not yet been the focus of the literature on the temporal orientation of managers.

scholarly journals Role of Foreign and Domestic Institutional Investors in Corporate Sustainability: Focusing on R&D Investment

2020 ◽  
Vol 12 (20) ◽  
pp. 8754 ◽  
Author(s):  
Ilhang Shin ◽  
Sorah Park
Keyword(s):  
Institutional Investors ◽  
Corporate Sustainability ◽  
Institutional Ownership ◽  
Ordinary Least Squares ◽  
Sustainable Growth ◽  
Least Squares Regression ◽  
Variable Approach ◽  
Managerial Myopia ◽  
D Investment

This paper examines the effects of ownership by foreign and domestic institutional investors on corporate sustainability by focusing on the level of research and development (R&D) investment. Long-term investment in R&D is crucial for companies that seek to generate sustainable growth. Ordinary least-squares regression is performed on a sample of Korean listed companies. The main test with both foreign and domestic institutional ownership is based on a study period from 2001 to 2004. The results indicate that firms with higher levels of foreign institutional ownership exhibit greater levels of corporate R&D activities, while the ownership by domestic institutions has no significant influence on firms’ R&D investment. An additional test with foreign institutional ownership data is based on an extended study period from 2001 to 2014, and shows that foreign institutional ownership is positively related to firms’ R&D investment. This result survives the two-stage instrumental variable approach used to address endogeneity factors in foreign institutional ownership. Taken together, these findings suggest that foreign institutions can effectively monitor managerial myopia and promote corporate innovations.

Costly trade, managerial myopia, and long-term investment

2009 ◽  
Vol 16 (1) ◽  
pp. 126-135 ◽  
Author(s):  
Craig W. Holden ◽  
Leonard L. Lundstrum
Keyword(s):  
Managerial Myopia

Foreign Institutional Ownership and R&D Activities: Evidence from High-tech French Firms

2020 ◽  
pp. 097215092097812
Author(s):  
Sami Gharbi ◽  
Hidaya Othmani
Keyword(s):  
Firm Value ◽  
Panel Data Analysis ◽  
Institutional Ownership ◽  
Dynamic Panel Data ◽  
High Tech ◽  
Managerial Myopia ◽  
Risky Investment ◽  
The Impact ◽  
D Investment

Foreign institutional investors hold over one-fifth of the total market value of the French stock market. Thus, it is important to analyse their influence on corporate investment decisions. This study investigates the impact of foreign institutional ownership on R&D activities. We examine whether these investors enhance or impede R&D investment intensity. Dynamic panel data analysis is applied to a sample of listed French high-tech firms over the period 2008–2014. Our results show that foreign institutional ownership encourages R&D investment while domestic institutional ownership dampens it. Foreign institutional ownership can act as a monitoring mechanism that reduces managerial myopia and encourages long-term and risky investment to enhance firm value.

The Effect of Bonus Deferral on Managers' Investment Decisions

2019 ◽  
Vol 31 (2) ◽  
pp. 31-49
Author(s):  
Mandy M. Cheng ◽  
Tami Dinh ◽  
Wolfgang Schultze ◽  
Maria Assel
Keyword(s):  
Investment Decisions ◽  
Data Availability ◽  
Managerial Compensation ◽  
Negative Consequences ◽  
Mediation Effects ◽  
Managerial Myopia ◽  
Bonus Payments ◽  
Psychology Literature ◽  
The Impact

ABSTRACT We examine the impact of deferred bonus payments and employment horizon on managers' investment decisions. Bonus deferral is an important element of compensation schemes designed to mitigate managers' tendency to avoid long-term investments that can reduce their bonuses, i.e., the problem of managerial myopia. Consistent with construal-level theory in the psychology literature, we find that bonus deferral increases managers' willingness to make an investment that has detrimental effects on their current bonus but that provides long-term benefits to the firm. This is driven by managers placing greater importance on their responsibilities for advancing their firm's long-term interests and on improving their reputations within their firms. These mediation effects are moderated by participants' employment horizon. Our study contributes to the debate on effective managerial compensation by showing that a simple deferral of bonus payments can reduce the negative consequences related to managerial myopia. JEL Classifications: M40; M41. Data Availability: Data are available from the authors upon request.

Therapy and prevention for mental health: What if mental diseases are mostly not brain disorders?

2019 ◽  
Vol 42 ◽  
Author(s):  
John P. A. Ioannidis
Keyword(s):  
Mental Health ◽  
Mental Disease ◽  
Brain Disorders ◽  
Social Stressors ◽  
Labor Education ◽  
Mental Diseases ◽  
Long Term Follow Up ◽  
Political Decisions

AbstractNeurobiology-based interventions for mental diseases and searches for useful biomarkers of treatment response have largely failed. Clinical trials should assess interventions related to environmental and social stressors, with long-term follow-up; social rather than biological endpoints; personalized outcomes; and suitable cluster, adaptive, and n-of-1 designs. Labor, education, financial, and other social/political decisions should be evaluated for their impacts on mental disease.

Conceptual short-term memory (CSTM) supports core claims of Christiansen and Chater

2016 ◽  
Vol 39 ◽  
Author(s):  
Mary C. Potter
Keyword(s):  
Working Memory ◽  
Rapid Serial Visual Presentation ◽  
Language Comprehension ◽  
Short Term Memory ◽  
Visual Presentation ◽  
Long Term Memory ◽  
Short Term ◽  
Term Memory ◽  
Use Of Knowledge

AbstractRapid serial visual presentation (RSVP) of words or pictured scenes provides evidence for a large-capacity conceptual short-term memory (CSTM) that momentarily provides rich associated material from long-term memory, permitting rapid chunking (Potter 1993; 2009; 2012). In perception of scenes as well as language comprehension, we make use of knowledge that briefly exceeds the supposed limits of working memory.

Brief summary of Kleť photographic search programme for minor planets

1999 ◽  
Vol 173 ◽  
pp. 189-192
Author(s):  
J. Tichá ◽  
M. Tichý ◽  
Z. Moravec
Keyword(s):  
Ccd Camera ◽  
Minor Planet ◽  
Minor Planets ◽  
Main Belt

AbstractA long-term photographic search programme for minor planets was begun at the Kleť Observatory at the end of seventies using a 0.63-m Maksutov telescope, but with insufficient respect for long-arc follow-up astrometry. More than two thousand provisional designations were given to new Kleť discoveries. Since 1993 targeted follow-up astrometry of Kleť candidates has been performed with a 0.57-m reflector equipped with a CCD camera, and reliable orbits for many previous Kleť discoveries have been determined. The photographic programme results in more than 350 numbered minor planets credited to Kleť, one of the world's most prolific discovery sites. Nearly 50 per cent of them were numbered as a consequence of CCD follow-up observations since 1994.This brief summary describes the results of this Kleť photographic minor planet survey between 1977 and 1996. The majority of the Kleť photographic discoveries are main belt asteroids, but two Amor type asteroids and one Trojan have been found.

Sign in / Sign up

Export Citation Format

Share Document