Corporate Governance Adrift

Aglietta, Michel; Rebérioux, Antoine

doi:10.4337/9781845425470

Cited by 225 publications

(57 citation statements)

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“…These two precise characteristics of myopia underlie the financial logic criticised by Espeland and Hirsch (1990), Lazonick and O'Sullivan (2000), and Aglietta and Rebérioux (2005), and the potential for the myopic reduction of real value suggested by Jensen et al (2004). Company executives can destroy long-term value in the way shown by Graham et al (2005), because they fall into the two myopia-related traps identified in the present study.…”

Section: Perceptions Of Share Pricesupporting

confidence: 56%

“…First, share price has been identified as long-term oriented due to it being formed based on all the future cash flows of a company (Fama, 1965;Brickley et al, 1985;Puffer and Weintrop, 1991). Second, and conversely, it has been claimed to be short-term oriented due to its links to myopia in financial markets, which emphasise quarterly earnings reporting and continuous visibility (Espeland and Hirsch, 1990;Aglietta and Rebérioux, 2005;Rappaport, 2005).…”

Section: Introductionmentioning

confidence: 99%

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Perceptions of share price: long‐term or short‐term oriented?

Chakhovich

2012

Acc Auditing Accountability J

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -One stream of research has claimed share price to be long-term oriented, whereas, in contrast, another has found it to be short-term oriented. Through in-depth analysis, this study aims to reveal the grounds for each of these two claims by studying the time-related constructs of two parties: executives of a company and outsider commentators of that company. Design/methodology/approach -The study employs a social constructionist approach and incorporates the sociology of time in the analysis of case data focused on a publicly quoted company. Data drawn from outsider commentators provide additional focus. Findings -The executives studied in the publicly-quoted company construct share price as long-term oriented through three processes: linguistic, practice-oriented functional, and morality-related functional. However, these executives construct time through a present-based rationality, which means that effective and efficient present actions are assumed to form the basis for a successful future. Outsider commentators indicate two myopia-related risks in this rationality: current, present day pressing issues are not deliberated upon in a wider framework of long-term plans, and it is not possible to relinquish the present and focus only on the future, free from present concerns. The long-term orientation of share price is constructed by executives as instrumental through processes that are tied to the present-based rationality with its myopia-related risks.Research limitations/implications -By showing the long and short time orientations of share price, the paper provides grounds for a subsequent analysis of the origins of these orientations within the minds of actors. Practical implications -The study provides guidance on avoiding myopia when using share price-related compensation systems. Originality/value -The study contributes to the performance measurement and corporate governance literatures by analysing, for the first time, share price from the perspective of executives themselves. In addition, the views of outsider commentators are considered.

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Section: Perceptions Of Share Pricesupporting

confidence: 56%

Section: Introductionmentioning

confidence: 99%

Perceptions of share price: long‐term or short‐term oriented?

Chakhovich

2012

Acc Auditing Accountability J

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“…At least three avenues for future research are involved here. The first consists in examining the relationship between global hybrids and other attempts at defining prevailing modes of regulation, such as financial capitalism (Aglietta & Rebérioux 2004), global governance (Brand 2005) or spatial nestedness (Boyer 2003). The second complements this basic assessment by analysing more systematically how the core analytical categories of global hybrids relate to the institutional forms and hierarchies of regulation theory, in particular as far as the status of the state, forms of competition and the inscription in the global economy are concerned.…”

Section: Discussionmentioning

confidence: 99%

Hybrids and Regulation in the Global Political Economy

Graz

2006

Competition & Change

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While regulation theory literature has made important contributions to the much-debated domain of globalisation by focusing on various aspects of post-Fordism, it has not yet fully engaged with the implications that can be drawn from critical approaches in international political economy. Recent studies have explored the transnational bases of new patterns and agents of change beyond states, firms and institutions traditionally involved in regulatory practices. Hybrid is often used as a default attribute reflecting lack of clear understanding of the breadth of this new type of influence and the opacity of the means involved. Drawing on the insights of philology and mythology, the paper argues that the notion of hybrid is relevant in elucidating the ontological ambiguity between imaginary and real aspects of globalisation. Furthermore, it specifies the categories involved in the analysis of emerging forms of hybrid regulation. Recent scholarship on globalisation tends to focus on the private-public nexus of the subjects involved in new forms of institutional arrangements and authority. Here, subjects, objects and space are analysed as joint issues. By focusing particularly on transformations affecting the role of the state, forms of competition, and their rescaling on a transnational basis, the concept of global hybrid is seen as complementary to the emancipation of regulation approaches from early emphasis on national levels of compromises.

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“…In particular, from the inter-war period onwards, more and more institutional and structural barriers to that capital market discipline were being erected, such that, as Michel Aglietta and Antoine Rebérioux observe, at least until the 1970s 'corporate governance, though assuming a different form on each side of the Atlantic, nevertheless concurred on one point: the weakness of market mechanisms in general, and of capital market mechanisms in particular'. 43 In the United States, the lack of capital market discipline was the result not so much of the dispersion of ownership per se, but of the growth of state law protecting firms from hostile takeovers from the 1930s onwards. 44 The resulting absence of a market for corporate control was a crucial element in the rise of 'corporate liberalism', 45 in which the modern corporation became the central organisation of capitalist society and relatively detached from the property-owning bourgeoisie, giving space to a relatively autonomous managerial class.…”

Section: Marketisation: Institutional Preconditions For Marketsmentioning

confidence: 99%