Explaining temporal orientation: Evidence from the durability of firms' capital investments

• 成果类型: Review
• 署名作者: Souder, David; Bromiley, Philip
• 署名单位: University of Connecticut; University of California System; University of California Irvine
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.970
• 发表日期: 2012
• 页码: 550-569
• 关键词: investment policy; behavioral theory; ceo incentives; temporal orientation; short-termism

摘要

In contrast to broad generalizations about the short-termism of managers, this paper explains changes in the temporal orientation of specific firms over time based on performance relative to aspirations and top management team incentives. We gain empirical traction on temporal orientation by measuring the durability of acquired property, plant, and equipment (asset durability) from reported data on depreciation expense. Consistent with predictions, we find that performance relative to aspirations positively influences asset durability. Surprisingly, we find no evidence that stock-based compensation produces the same effect. Instead, we find stock-based compensation lowers asset durability. Copyright (c) 2011 John Wiley & Sons, Ltd.