A1 Vertaisarvioitu alkuperäisartikkeli tieteellisessä lehdessä
Who creates short-term pressure? An analysis of firms with different ownership structures
Tekijät: Eva Liljeblom, Mika Vaihekoski
Kustantaja: Association of Business Schools Finland
Julkaisuvuosi: 2010
Journal: Liiketaloudellinen Aikakauskirja
Numero sarjassa: 3
Vuosikerta: 59
Numero: 3
Aloitussivu: 239
Lopetussivu: 264
ISSN: 0024-3469
Verkko-osoite: http://lta.hse.fi/2010/3/lta_2010_03_a1.pdf
Tiivistelmä
Several papers report evidence on corporate short-term value maximization e.g. in the form of earnings management, or reluctance to undertake profitable investments, if such investments hurt the result in the short run. We provide new evidence on who causes such short-term behavior, and what kind of effect is has on companies. We find significant differences in the perceived short-term pressure (i.e. pressure that may compromise long-term goals) caused by different shareholder and stakeholder categories such as families, activist owners, or market forces (financial analysts). In firms with allegedly more short-term owners, such pressure felt is significantly higher, and its sources include not only the current owner categories, but also perceived marginal investors. Firms also show cross-sectional variation across different ownership backgrounds in their actions to cope with such pressure.
Several papers report evidence on corporate short-term value maximization e.g. in the form of earnings management, or reluctance to undertake profitable investments, if such investments hurt the result in the short run. We provide new evidence on who causes such short-term behavior, and what kind of effect is has on companies. We find significant differences in the perceived short-term pressure (i.e. pressure that may compromise long-term goals) caused by different shareholder and stakeholder categories such as families, activist owners, or market forces (financial analysts). In firms with allegedly more short-term owners, such pressure felt is significantly higher, and its sources include not only the current owner categories, but also perceived marginal investors. Firms also show cross-sectional variation across different ownership backgrounds in their actions to cope with such pressure.
Turun yliopiston Tutkimustietojärjestelmän portaali