606
Views
14
CrossRef citations to date
0
Altmetric
Original Articles

How do the combined effects of CEO decision horizon and compensation impact the relationship between earnings pressure and R&D retrenchment?

&

REFERENCES

  • Aboody, D., and B. Lev. 2000. Information asymmetry, R&D, and insider gains. Journal of Finance 55: 2747–66. doi: 10.1111/0022-1082.00305
  • Acharya, V., S.C. Myers, and R.G. Rajan. 2011. The internal governance of firms. Journal of Finance 66: 689–720. doi: 10.1111/j.1540-6261.2011.01649.x
  • Antia, M., C. Pantzalis, and J.C. Park. 2010. CEO decision horizon and firm performance. Journal of Corporate Finance 16: 288–301. doi: 10.1016/j.jcorpfin.2010.01.005
  • Bénabou, R., and J. Tirole. 2002. Self-confidence and personal motivation. Quarterly Journal of Economics 117, no. 3: 871–915. doi: 10.1162/003355302760193913
  • Bower, J.L., and C.G. Gilbert. 2007. How managers’ everyday decisions create or destroy your company's strategy. Harvard Business Review 85: 72–9.
  • Cassell, C., S. Huang, J. Sanchez, and M. Stuart. 2012. Seeking safety: The relation between CEO inside debt holdings and the riskiness of firm investment and financial policies. Journal of Financial Economics 103: 588–610. doi: 10.1016/j.jfineco.2011.10.008
  • Certo, S.T., C.M. Daily, A.A. CannellaJr., and D.R. Dalton. 2003. Giving money to get money: How CEO stock options and CEO equity enhance IPO valuations. Academy of Management Journal 46, no. 5: 43–653.
  • Cheng, S. 2004. R&D expenditures and CEO compensation. The Accounting Review 79, no. 2: 305–28. doi: 10.2308/accr.2004.79.2.305
  • Cheng, S., V. Nagar, and M. Rajan. 2005. Identifying control motives in managerial ownership: Evidence from antitakeover legislation. Review of Financial Studies 18, no. 2: 637–72.
  • Claessens, S., S. Djankov, and L.H.P. Lang. 2000. The separation of ownership and control in East Asian corporations. Journal of Financial Economics 52: 81–112. doi: 10.1016/S0304-405X(00)00067-2
  • Cohen, J., and P. Cohen, 1983. Applied multiple regression/correlation analysis for the behavioral sciences. 2nd ed. Hillsdale, NJ: Erlbaum.
  • Davidson, W.N., B. Xie, and Y. Ning. 2007. The influence of executive age, career horizon and incentives on pre-turnover earnings management. Journal of Management and Governance 11: 45–60. doi: 10.1007/s10997-007-9015-8
  • Dechow, P., and R. Sloan. 1991. Executive incentives and the horizon problem: An empirical investigation. Journal of Accounting and Economics 14: 51–89. doi: 10.1016/0167-7187(91)90058-S
  • Demirag, I.S. 1996. The impact of managers’ short-term perceptions on technology management and R&D in UK companies. Technology Analysis & Strategic Management 8, no. 1: 21–32. doi: 10.1080/09537329608524230
  • Farrell, K.A., J. Yu, and Y. Zhang. 2013. What are the characteristics of firms that engage in earnings per share management through share repurchases? Corporate Governance: An International Review 21, no. 4: 334–50. doi: 10.1111/corg.12029
  • Finkelstein, S. 1992. Power in top management teams: Dimensions, measurement, and validation. Academy of Management Journal 35: 505–38. doi: 10.2307/256485
  • Finkelstein, S., and B. Boyd. 1998. How much does the CEO matter? The role of managerial discretion in the setting of CEO compensation. Academy of Management Journal 41, no. 2: 179–200. doi: 10.2307/257101
  • Fuller, J., and M.C. Jensen. 2002. Just say no to Wall Street: Courageous CEOs are putting a stop to the earnings game and we will all be better off for it. Journal of Applied Corporate Finance 14: 41–6. doi: 10.1111/j.1745-6622.2002.tb00447.x
  • Gentry, R.J., and W. Shen. 2013. The impacts of performance relative to analyst forecasts and analyst coverage on firm R&D intensity. Strategic Management Journal 34: 121–30. doi: 10.1002/smj.1997
  • Hair Jr., J.F., R.E. Anderson, R.L. Tatham, and W.C. Black. 1998. Multivariate data analysis. Englewood Cliffs, NJ: Prentice-Hall.
  • Harris, M., and A. Raviv. 1991. The theory of capital structure. Journal of Finance 46: 297–355. doi: 10.1111/j.1540-6261.1991.tb03753.x
  • Haushalter, D.G. 2000. Financing policy, basis risk, and corporate hedging: Evidence from oil and gas producers. Journal of Finance 55: 107–52. doi: 10.1111/0022-1082.00202
  • He, J., and X. Tian. 2013. The dark side of analyst coverage: The case of innovation. Journal of Financial Economics 109, no. 3: 856–78. doi: 10.1016/j.jfineco.2013.04.001
  • Hirshleifer, D., and A.V. Thakor. 1992. Managerial conservatism, project choice, and debt. Review of Financial Studies 5: 437–70. doi: 10.1093/rfs/5.3.437
  • Kahneman, D., and A. Tversky. 1979. Prospect theory: An analysis of decision under risk. Econometrica 47: 313–27. doi: 10.2307/1914185
  • Kasznik, R., and M.F. McNichols. 2002. Does meeting earnings expectations matter? Evidence from analyst forecast revisions and share prices. Journal of Accounting Research 40, no. 3: 727–59. doi: 10.1111/1475-679X.00069
  • Keck, S. 1997. Top management team structure: Differential effects by environmental context. Organization Science 8, no. 2: 143–56. doi: 10.1287/orsc.8.2.143
  • Kor, Y.Y. 2006. Direct and interaction effects of top management team and board compositions on R&D investment strategy. Strategic Management Journal 27: 1081–99. doi: 10.1002/smj.554
  • Krishnan, J., and J.S. Yang. 2009. Recent trends in audit report and earnings announcement lags. Accounting Horizons 23, no. 3: 265–88. doi: 10.2308/acch.2009.23.3.265
  • Kuratko, D.F., J.S. Hornsby, and D.W. Naffziger. 1997. An examination of owners’ goals in sustaining entrepreneurship. Journal of Small Business Management 35: 24–33.
  • LaFond, R., and S. Roychowdhury. 2008. Managerial ownership and accounting conservatism. Journal of Accounting Research 46: 101–35. doi: 10.1111/j.1475-679X.2008.00268.x
  • Lim, E.N.K., and B.T. McCann. 2013. Performance feedback and firm risk taking: The moderating effects of CEO and outside director stock options. Organization Science 25: 262–82. doi: 10.1287/orsc.2013.0830
  • Matta, E., and P.W. Beamish. 2008. The accentuated CEO career horizon problem: Evidence from international acquisitions. Strategic Management Journal 29: 683–700. doi: 10.1002/smj.680
  • Moyer, R.C., R.E. Chatfield, and P.E. Sisneros. 1989. Security analyst monitoring activity: Agency costs and information demands. Journal of Financial and Quantitative Analysis 24: 503–12. doi: 10.2307/2330982
  • Murphy, K.J. 1999. Executive compensation. In Handbook of labor economics, ed. O. Ashenfelter and D. Card, 2485–563. Amsterdam: North Holland.
  • Murphy, K.J., and J. Zimmerman. 1993. Financial performance surrounding CEO turnover. Journal of Accounting and Economics 16: 273–315. doi: 10.1016/0165-4101(93)90014-7
  • Musteen, M., V.L. Barker, and V.L. Baeten. 2006. CEO attributes associated with attitude toward change: The direct and moderating effects of CEO tenure. Journal of Business Research 59: 604–12. doi: 10.1016/j.jbusres.2005.10.008
  • Ng, T.W.H., M.M. Butts, R.J. Vandenberg, D.W. DeJoy, and M.G. Wilson. 2006. Effects of management communication, opportunity for learning, and work schedule flexibility on organizational commitment. Journal of Vocational Behavior 68, no. 3: 474–89. doi: 10.1016/j.jvb.2005.10.004
  • Osma, B.G., and S. Young. 2009. R&D expenditure and earnings targets. European Accounting Review 18: 7–32. doi: 10.1080/09638180802016718
  • Papadakis, V., and D. Bourantas. 1998. The chief executive officer as corporate champion of technological innovation: An empirical investigation. Technology Analysis & Strategic Management 10, no. 1: 89–110. doi: 10.1080/09537329808524306
  • Roychowdhury, S. 2006. Earnings management through real activities manipulation. Journal of Accounting and Economics 42: 335–70. doi: 10.1016/j.jacceco.2006.01.002
  • Samila, S., and O. Sorenson. 2010. Venture capital as a catalyst to commercialization. Research Policy 39: 1348–60. doi: 10.1016/j.respol.2010.08.006
  • Sanders, W.G., and D.C. Hambrick. 2007. Swinging for the fences: The effects of CEO stock options on company risk taking and performance. Academy of Management Journal 50, no. 5: 1055–78. doi: 10.5465/AMJ.2007.27156438
  • Tosi, H., J.P. Katz, and L.R. Gomez-Mejia. 1997. Disaggregating the agency contract: The effects of monitoring, incentive alignment, and term in office on agent decision making. Academy of Management Journal 40: 584–602. doi: 10.2307/257054
  • Wu, J., and R. Tu. 2007. CEO stock option pay and R&D spending: A behavior agency explanation. Journal of Business Research 60: 482–92. doi: 10.1016/j.jbusres.2006.12.006
  • Zhang, X., K.M. Bartol, K.G. Smith, M.D. Pfarrer, and D.M. Khanin. 2008. CEOs on the edge: Earnings manipulation and stock-based incentive misalignment. Academy of Management Journal 51: 241–58. doi: 10.5465/AMJ.2008.31767230
  • Zhang, Y., and J. Gimeno. 2010. Earnings pressure and competitive behavior: Evidence from the U.S. electricity industry. Academy of Management Journal 53, no. 4: 743–68. doi: 10.5465/AMJ.2010.52814593

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.