Short-term expectation in listed firms: The effects of different owner types

Tor Brunzell, Eva Liljeblom, Mika Vaihekoski

Forskningsoutput: TidskriftsbidragArtikelVetenskapligPeer review

2 Citeringar (Scopus)

Sammanfattning

We report empirical evidence in line with the disciplining role of different institutional and other owner types in reducing managerial myopia. Using data from a large Nordic survey, we find that companies, to a reasonably high degree, feel that external pressure for a good result in the short-term generates conflict with the company’s long-term goals. We test for the effect of different ownership types and find that especially in firms with a large and non-transitory activist or fund as an owner, the perceived pressure for shortterm actions is reduced. In addition, we observe a negative association between firmprofitability and short-term pressure, and we find that younger managers feel significantly more pressure. Firms subject to greater pressure engage in more actions to accommodate that pressure. Again, the impact of a large activist owner is especially beneficial because such firms significantly less often undertake actions that have the potential to destroy value, such as deprioritizing their long-term investments or R&D.
OriginalspråkEngelska
Referentgranskad vetenskaplig tidskriftJournal of International Financial Management & Accounting
Volym26
Utgåva3
Sidor (från-till)223-256
DOI
StatusPublicerad - 02.09.2015
MoE-publikationstypA1 Originalartikel i en vetenskaplig tidskrift

Nyckelord

  • 512 Företagsekonomi

Fingeravtryck Fördjupa i forskningsämnen för ”Short-term expectation in listed firms: The effects of different owner types”. Tillsammans bildar de ett unikt fingeravtryck.

Citera det här