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ACCOUNTING FOR FINANCIAL AND MANAGERIAL CAUSES OF SHORT‐TERM PRESSURES IN BRITISH CORPORATIONS

ACCOUNTING FOR FINANCIAL AND MANAGERIAL CAUSES OF SHORT‐TERM PRESSURES IN BRITISH CORPORATIONS Short‐term pressures are defined and a distinction drawn between external S‐TP, mainly from shareholders, and internal S‐TP, from top management. A conceptual framework for analysing S‐TP is developed and empirical evidence for their existence reviewed. Although certain crude formulations of the argument for short‐termism are rejected, evidence is found for the existence of both types of S‐TP in the UK. Variations in their intensity among sectors can be accounted for partly by inherent differences in technology, and partly by differences in the behaviour of firms. Excessive diversification, particularly by acquisition, exacerbates S‐TP. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business Finance & Accounting Wiley

ACCOUNTING FOR FINANCIAL AND MANAGERIAL CAUSES OF SHORT‐TERM PRESSURES IN BRITISH CORPORATIONS

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References (26)

Publisher
Wiley
Copyright
Copyright © 1994 Wiley Subscription Services, Inc., A Wiley Company
ISSN
0306-686X
eISSN
1468-5957
DOI
10.1111/j.1468-5957.1994.tb00371.x
Publisher site
See Article on Publisher Site

Abstract

Short‐term pressures are defined and a distinction drawn between external S‐TP, mainly from shareholders, and internal S‐TP, from top management. A conceptual framework for analysing S‐TP is developed and empirical evidence for their existence reviewed. Although certain crude formulations of the argument for short‐termism are rejected, evidence is found for the existence of both types of S‐TP in the UK. Variations in their intensity among sectors can be accounted for partly by inherent differences in technology, and partly by differences in the behaviour of firms. Excessive diversification, particularly by acquisition, exacerbates S‐TP.

Journal

Journal of Business Finance & Accounting – Wiley

Published: Dec 1, 1994

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