Corporate ownership and managerial short-termism: Results from a Finnish study of management perceptions

Liljeblom, Eva; Vaihekoski, Mika

doi:10.1016/j.ijpe.2008.12.008

Cited by 27 publications

(26 citation statements)

References 14 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Of the other variables, only STATE_MUN shows a more systematic pattern, always with a negative sign and significant in five cases, though with a coefficient less negative than that for ACTIVIST_LT. This result is consistent with our hypotheses and also with the results for non‐listed firms in Finland as reported by Liljeblom and Vaihekoski (), where ownership by the state or a municipality was perceived to be associated with reduced pressure for short‐termism. Furthermore, while the coefficient for CO_OP is significant five times, its sign varies.…”

Section: Resultssupporting

confidence: 93%

“…Table indicates that the average pressure experienced is intermediate, ranging between 2 and 3 (the overall average is 2.72). This value is comparable to the average of 2.838, which was reported by Liljeblom and Vaihekoski () for unlisted firms in Finland. There are very few systematic country differences, with Iceland being, perhaps, the only clear exception.…”

Section: Resultssupporting

confidence: 86%

“…These groups included, in addition to institutional owners, private owners and other firms as owners. Liljeblom and Vaihekoski () find that in a sample of large, mainly unlisted firms, the pressure for short‐term actions was less in firms categorized as being owned by a long‐term owner (a private owner, the state or a municipality, or a cooperative) when compared to listed firms, firms owned by private equity owners, foreign owners, and firms owned by another firm.…”

Section: Previous Research and Hypotheses Developmentmentioning

confidence: 99%

See 2 more Smart Citations

Short‐Term Expectations in Listed Firms: The Effects Of Different Owner Types

Brunzell

Liljeblom

Vaihekoski

2015

Financ Manag Account

Self Cite

View full text Add to dashboard Cite

We report empirical evidence regarding the disciplining role of different institutional and other owners 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 several ownership types, and find that especially in firms with a large private equity owner the perceived pressure for short-term actions is reduced. In addition, we find a negative association between firm profitability and short-term pressure. We also find support for a behavioral characteristic: younger managers feel significantly more pressure. Firms subject to higher pressure undertake more actions to accommodate that pressure. Again, the impact of especially a large private equity owner is beneficial because such firms undertake significantly less often actions that are likely to destroy value, such as deprioritizing their long-term investments or R&D.

show abstract

Section: Resultssupporting

confidence: 93%

Section: Resultssupporting

confidence: 86%

Section: Previous Research and Hypotheses Developmentmentioning

confidence: 99%

See 1 more Smart Citation

Short‐Term Expectations in Listed Firms: The Effects Of Different Owner Types

Brunzell

Liljeblom

Vaihekoski

2015

Financ Manag Account

Self Cite

View full text Add to dashboard Cite

show abstract

“…Recently, attention has focused on the ways in which company ownership type (for example, Liljeblom and Vaihekoski 2009) and governance structures have an effect on the development of internal routines, processes and systems that are associated with short‐termism. In comparing managerial, alliance and family governance structures, Carney (2005) argues that attributes for value‐creating and value‐destroying are often entrenched in systems of corporate governance.…”

Section: The Importance Of Contextmentioning

confidence: 99%

Overcoming Short‐Termism: Mental Time Travel, Delayed Gratification and How Not to Discount the Future

Irving¹

2009

Australian Accounting Review

View full text Add to dashboard Cite

Short‐termism has been identified as a characteristic of individuals, companies, stock markets, governance structures and policies, and has been linked to inadequate saving for retirement, reduced investment returns, greater market instability and destruction of long‐term value. As a construct, short‐termism is complex and multidimensional. Accordingly, this paper draws upon current theory and research from a range of fields including behavioural economics, psychology and the cognitive sciences to uncover both explanations of the phenomenon and implications for countering an overly short‐term focus. Possible strategies for achieving the latter are discussed.

show abstract

“…Essa abordagem se origina nos conjuntos de técnicas de validação empírica da modelagem de equações estruturais (MEE) e permite ao pesquisador testar estudos teóricos na prática, proporcionando uma avaliação do ajuste do modelo e dos parâmetros individuais, por meio da comparação entre modelos alternativos, para sugerir que uma especificação de ordem mais elevada seja mais adequada à relação teoria/prática estudada (GERBING; HAMILTON; FREEMAN, 1994;KOUFTEROS;BABBAR;KAIGHOBADI, 2009;LILJEBLOM;VAIHEKOSKI, 2009). …”

Section: Introductionunclassified

Aplicabilidade Da Escala Eccb Ao Paradigma Da Modelagem De Segunda Ordem: Uma Análise Do Consumo Consciente De Cosméticos

Ladeira

Santini

Araújo

2015

Race

View full text Add to dashboard Cite

No presente artigo teve-se como objetivo analisar as influências dos constructos de primeira e segunda ordem da escala Ecologically Conscious Consumer Behavior (ECCB) no consumo consciente de cosméticos. Para alcançar esse objetivo, foi realizada uma survey com 554 consumidores de três marcas de cosméticos na grande Porto Alegre. Os resultados apontaram a existência de diferentes relações entre os constructos nos quatro modelos hierárquicos estudados, contrastando com estudos publicados na área. O modelo mais parcimonioso demonstrou ausência de relação na percepção da eficácia, coeficientes mais fortes no liberalismo e moderados no altruísmo e na preocupação ambiental, diferente dos estudos das escalas originais. O conjunto de resultados propõe uma forma de análise de Modelagem de Equações Estruturais (MEE) pouco utilizada no meio acadêmico, demonstrando, assim, vantagens de se utilizar a modelagem de segunda ordem em estudo de modelagem de equações estruturais. Por fim, realizou-se uma análise crítica do uso da MEE de segunda ordem e propuseram-se novas análises para superar as limitações deste estudo.Palavras-chave: Ecologically Conscious Consumer Behavior. Modelagem de equações estruturais. Modelagem de segunda ordem.

show abstract

Corporate ownership and managerial short-termism: Results from a Finnish study of management perceptions

Cited by 27 publications

References 14 publications

Short‐Term Expectations in Listed Firms: The Effects Of Different Owner Types

Short‐Term Expectations in Listed Firms: The Effects Of Different Owner Types

Overcoming Short‐Termism: Mental Time Travel, Delayed Gratification and How Not to Discount the Future

Aplicabilidade Da Escala Eccb Ao Paradigma Da Modelagem De Segunda Ordem: Uma Análise Do Consumo Consciente De Cosméticos

Contact Info

Product

Resources

About