Access the full text.
Sign up today, get DeepDyve free for 14 days.
Caroline Flammer, Bryan Hong, Dylan Minor (2018)
Corporate Governance and the Rise of Integrating Corporate Social Responsibility Criteria in Executive Compensation: Effectiveness and Implications for Firm OutcomesCorporate Social Responsibility (CSR) eJournal
L. Vo, H. Le (2017)
Strategic growth option, uncertainty, and R&D investmentInternational Review of Financial Analysis, 51
J. Stein (1988)
Takeover Threats and Managerial MyopiaJournal of Political Economy, 96
I. Evstigneev, Wael Bahsoun, M. Taksar, L. MacLean, W. Ziemba (2013)
Growth-optimal investments and numeraire portfolios under transactions costs
Vincent Barker, George Mueller (2002)
CEO Characteristics and Firm R&D SpendingManag. Sci., 48
Rong Xu, Conggang Li, C. Cao, Minghao Fang (2020)
Does science–industry cooperation policy enhance corporate innovation: Evidence from Chinese listed firmsAccounting and Finance
Gerardus Lucas, J. Knoben, M. Meeus (2018)
Contradictory yet Coherent? Inconsistency in Performance Feedback and R&D Investment ChangeJournal of Management, 44
D. Kahneman, A. Tversky (2013)
Handbook of the Fundamentals of Financial Decision Making: Part I
H. Gardner (2012)
Performance Pressure as a Double-edged SwordAdministrative Science Quarterly, 57
Patrick McClelland, Vincent Barker (2011)
CEO Career Horizon and Tenure: Future Performance Implications under Different ContingenciesCorporate Finance: Governance
Timothy Palmer, R. Wiseman (1999)
Decoupling risk taking from income stream uncertainty: a holistic model of riskStrategic Management Journal, 20
A. Chakraborty, S. Sheikh, Narayanan Subramanian (2004)
Termination Risk and Managerial Risk TakingLabor: Supply & Demand
E. Altman (1968)
FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCYJournal of Finance, 23
D. Hirshleifer, A. Low, S. Teoh (2011)
Are Overconfident CEOs Better Innovators?LRN: Leadership Behaviors (Topic)
Sujuan Xie, Yujiang Chen, Yunguo Liu (2020)
Internal governance and innovationAccounting and Finance
K. Laverty (1996)
Economic “Short-Termism”: The Debate, The Unresolved Issues, and The Implications for Management Practice and ResearchAcademy of Management Review, 21
J. Beňa, Miguel Ferreira, Pedro Matos, P. Pires (2016)
Are Foreign Investors Locusts? The Long-Term Effects of Foreign Institutional OwnershipIRPN: Innovation & International Economics (Topic)
N. Kulatilaka, E. Perotti (1998)
Strategic Growth OptionsManagement Science, 44
A. Kempf, Tanja Thiele, S. Ruenzi (2007)
Employment Risk, Compensation Incentives and Managerial Risk Taking: Evidence from the Mutual Fund IndustryPension Risk Management eJournal
J. March, Z. Shapira (1992)
Variable risk preferences and the focus of attentionPsychological Review, 99
S. Frederick, G. Loewenstein, T. O’Donoghue (2002)
Time discounting and time preference: a critical review, 40
Ke Zhang, J. Wang, Yanqi Sun, Sarowar Hossain (2020)
Financial slack, institutional shareholding and enterprise innovation investment: evidence from ChinaAccounting and Finance
Siew-Boey Yeoh, C. Hooy (2020)
CEO age and risk-taking of family business in Malaysia: The inverse S-curve relationshipAsia Pacific Journal of Management, 39
Peter Demerjian, B. Lev, Sarah McVay (2011)
Quantifying Managerial Ability: A New Measure and Validity TestsERPN: Governance (Management) (Topic)
P. Bromiley (1991)
Testing a Causal Model of Corporate Risk Taking and PerformanceAcademy of Management Journal, 34
M. Heyden, M. Reimer, S. Doorn (2017)
Innovating beyond the horizon: CEO career horizon, top management composition, and R&D intensityHuman Resource Management, 56
D. C. Hambrick, P. A. Mason (1984)
Upper echelons: the organisation as a reflection of its top managers, 9
D. Miller, P. H. Friesen (1980)
Momentum and revolution in organisational adaptation, 23
P. Koh, D. Reeb (2015)
Missing R&DJournal of Accounting and Economics, 60
Tim Campbell, A. Mariño (1994)
Myopic Investment Decisions and Competitive Labor MarketsInternational Economic Review, 35
David Miller (1991)
Stale in the Saddle: CEO Tenure and the Match Between Organization and EnvironmentManagement Science, 37
Douglas Diamond (1991)
Monitoring and Reputation: The Choice between Bank Loans and Directly Placed DebtJournal of Political Economy, 99
Alon Brav, Wei Jiang, Song Ma, X. Tian (2016)
How Does Hedge Fund Activism Reshape Corporate Innovation?Corporate Finance: Governance
Yu Zhang, Javier Gimeno (2016)
Earnings Pressure and Long-Term Corporate Governance: Can Long-Term-Oriented Investors and Managers Reduce the Quarterly Earnings Obsession?Organ. Sci., 27
Yi Tang, Jiatao Li, Hongyan Yang (2015)
What I See, What I DoJournal of Management, 41
D. Marginson, L. McAulay (2008)
Exploring the debate on short-termism: a theoretical and empirical analysisSouthern Medical Journal, 29
Zeki Simsek (2007)
CEO tenure and organizational performance: an intervening modelSouthern Medical Journal, 28
Won‐yong Oh, Y. Chang, Zheng Cheng (2016)
When CEO Career Horizon Problems Matter for Corporate Social Responsibility: The Moderating Roles of Industry-Level Discretion and Blockholder OwnershipJournal of Business Ethics, 133
Bok Baik, D. Farber, S. Lee (2011)
CEO ability and management earnings forecastsContemporary Accounting Research, 28
Murad Antia, Christos Pantzalis, J. Park (2008)
CEO Decision Horizon and Firm Performance: An Empirical InvestigationCorporate Finance: Governance
Peter Demerjian, B. Lev, Melissa Lewis, Sarah McVay (2013)
Managerial Ability and Earnings QualityThe Accounting Review, 88
Anup Agrawal, G. Mandelker (1987)
Managerial Incentives and Corporate Investment and Financing DecisionsJournal of Finance, 42
R. Gentry, Wei Shen (2012)
The impacts of performance relative to analyst forecasts and analyst coverage on firm R&D intensitySouthern Medical Journal, 34
Christofer Adrian, Sue Wright (2018)
Perceptions of shareholders and directors on corporate governance: what we learn about director primacyAccounting & Finance
A. Kraft, Rahul Vashishtha, M. Venkatachalam (2018)
Frequent Financial Reporting and Managerial MyopiaThe Accounting Review, 93
Chen Lin, P. Lin, F. Song, Chuntao Li (2009)
Managerial Incentives, CEO Characteristics and Corporate Innovation in China’s Private SectorManagement of Innovation eJournal
(2009)
Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches
G. Hale, João Santos (2004)
The Decision to First Enter the Public Bond Market: The Role of Firm Reputation, Funding Choices, & Bank RelationshipsCorporate Reputation eJournal
Patricia Dechow, Richard Sloan (1991)
Executive incentives and the horizon problem: An empirical investigationJournal of Accounting and Economics, 14
Yangyang Chen, Edward Podolski, M. Veeraraghavan (2015)
Does managerial ability facilitate corporate innovative successJournal of Empirical Finance, 34
E. Matta, P. Beamish (2008)
The accentuated CEO career horizon problem: evidence from international acquisitionsSouthern Medical Journal, 29
Richard Cazier (2011)
Measuring R&D Curtailment Among Short-Horizon CEOsCorporate Governance & Accounting eJournal
Michael Jensen, W. Meckling (1976)
Theory of the Firm
V. Aivazian, Mohammad Rahaman, Simiao Zhou (2019)
Does corporate diversification provide insurance against economic disruptions?Journal of Business Research
S. Cho, S. Kim (2017)
Horizon problem and firm innovation: The influence of CEO career horizon, exploitation and exploration on breakthrough innovationsResearch Policy, 46
M. C. Jensen, W. H. Meckling (1976)
Theory of the firm: managerial behaviour, agency costs and ownership structure, 3
Marianna Makri, Peter Lane, L. Gómez‐Mejía (2006)
CEO incentives, innovation, and performance in technology‐intensive firms: a reconciliation of outcome and behavior‐based incentive schemesSouthern Medical Journal, 27
H. K. Gardner (2012)
Performance pressure as a double edged sword: enhancing team motivation but undermining use of team knowledge, 57
J. Lee, J. Park, Timothy Folta (2018)
CEO Career Horizon, Corporate Governance, and Real Options: The Role of Economic Short-TermismUConn: Management (Topic)
Adrian C. (2018)
1209Accounting and Finance, 60
R. Gibbons, K. J. Murphy (1992)
Optimal incentive contracts in the presence of career concerns: theory and evidence, 100
Hsiang‐Lan Chen (2013)
CEO Tenure, Independent Directors and Corporate InnovationJournal of Applied Finance and Banking, 3
K. J. Laverty (2004)
Managerial myopia or systemic myopia? The importance of managerial systems in valuing the long term, 42
K. J. Laverty (1996)
Economic ‘myopia’: the debate, the unresolved issues, and the implications for management practice and research, 21
Y. Tang, J. Li, H. Yang (2015)
What I see, what I do: how executive hubris affects firm innovation, 41
K. Laverty (2004)
Managerial myopia or systemic short‐termism?Management Decision, 42
Combining the views of managerial myopia and risk aversion, we argue that a short decision horizon could divert corporate investments away from R&D investments. We devise an industry‐adjusted measurement combining CEO’s expected tenure and age as a proxy for CEO decision horizon and find a positive relationship between the horizon and corporate R&D investments. The relationship is stronger among firms with lower industry‐level income volatility and lower firm‐level performance pressure. The results also show that CEO age is more important than CEO tenure in affecting the decision horizon. Further analyses indicate that risk aversion determines the studied relationship.
Accounting & Finance – Wiley
Published: Dec 1, 2021
Keywords: Agency problem; CEO decision horizon; Performance pressure; R&D investments; Risk aversion
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.