Exploring the debate on short-termism: a theoretical and empirical analysis |
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Authors: | David Marginson Laurie McAulay |
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Affiliation: | 1. Cardiff Business School, Cardiff University, Cardiff, U.K.;2. Business School, Loughborough University, Loughborough, U.K. |
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Abstract: | The debate on short-termism has focused on the economic factors of capital markets and performance measurement systems. Laverty (1996) has advocated the inclusion of individual and organizational dimensions to extend the debate. We reorient Laverty's extended debate by drawing upon a broad management and accounting literature and thereby develop testable theoretical explanations of short-termism. The resulting hypotheses are tested in a telecommunications company. Our findings provide support for Laverty's (1996) argument that individual and organizational factors are important determinants of short-termism. Copyright © 2007 John Wiley & Sons, Ltd. |
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Keywords: | short-termism role ambiguity social influence capital markets performance measurement |
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