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Short-term Performance (short-term + performance)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	83%

Selected Abstracts

Income Smoothing and Discretionary R&D Expenditures of Japanese Firms,

CONTEMPORARY ACCOUNTING RESEARCH, Issue 2 2000
VIVEK MANDE
Abstract During the recent recession (1991 to present), Japanese firms decreased their spending on R&D for the first time since World War II. The decreases have raised concerns that Japanese managers may be making suboptimal allocations to R&D. We test whether Japanese managers adjust R&D based on short-term performance. Our results show that Japanese firms in several industries adjust their R&D budgets to smooth profits. Interestingly, adjustments to R&D are larger in expansion years. These results, similar to those documented with U.S. managers, point to myopic decision making by Japanese managers. [source]

The Behavior and Performance of Foreign Investors in Emerging Equity Markets: Evidence from Taiwan

INTERNATIONAL REVIEW OF FINANCE, Issue 3-4 2003
Anchor Y. Lin
This study investigates trading behavior and investment performance of foreign investors in 60 large-size firms listed on the Taiwan Stock Exchange. Strong evidence is found that foreign investors employ momentum strategies of buying past winners and selling past losers and favor large-size, high book-to-market, and high-tech stocks, while no evidence is found that foreign investors herd on market consensus. Findings show that foreign investors are short-term superior performers but long-term inferior performers. The short-term superior performance appears to be driven partially by price momentum of winners portfolios rather than by risk taking. After controlling for firm size, share turnover, and industry, foreigners' short-term performance in large-size, high-turnover, and high-tech stocks is better than it is in small-size, low-turnover, and non-high-tech stocks. [source]

Identifying and Attracting the "right" Investors: Evidence on the Behavior of Institutional Investors

JOURNAL OF APPLIED CORPORATE FINANCE, Issue 4 2004
Brian Bushee
This article summarizes the findings of research the author has conducted over the past seven years that aims to answer a number of questions about institutional investors: Are there significant differences among institutional investors in time horizon and other trading practices that would enable such investors to be classified into types on the basis of their observable behavior? Assuming the answer to the first is yes, do corporate managers respond differently to the pressures created by different types of investors, and, by implication, are certain kinds of investors more desirable from corporate management's point of view? What kinds of companies tend to attract each type of investor, and how does a company's disclosure policy affect that process? The author's approach identifies three categories of institutional investors: (1) "transient" institutions, which exhibit high portfolio turnover and own small stakes in portfolio companies; (2) "dedicated" holders, which provide stable ownership and take large positions in individual firms; and (3) "quasi-indexers," which also trade infrequently but own small stakes (similar to an index strategy). As might be expected, the disproportionate presence of transient institutions in a company's investor base appears to intensify pressure for short-term performance while also resulting in excess volatility in the stock price. Also not surprising, transient investors are attracted to companies with investor relations activities geared toward forward-looking information and "news events," like management earnings forecasts, that constitute trading opportunities for such investors. By contrast, quasi-indexers and dedicated institutions are largely insensitive to shortterm performance and their presence is associated with lower stock price volatility. The research also suggests that companies that focus their disclosure activities on historical information as opposed to earnings forecasts tend to attract quasi-indexers instead of transient investors. In sum, the author's research suggests that changes in disclosure practices have the potential to shift the composition of a firm's investor base away from transient investors and toward more patient capital. By removing some of the external pressures for short-term performance, such a shift could encourage managers to establish a culture based on long-run value maximization. [source]

Effects of moisture, nitrogen, grass competition and simulated browsing on the survival and growth of Acacia karroo seedlings

AFRICAN JOURNAL OF ECOLOGY, Issue 4 2009
Keletso Mopipi
Abstract The effects of irrigation, nitrogen fertilization, grass competition and clipping were investigated for one growing season at the research farm of the University of Fort Hare in the Eastern Cape Province of South Africa. The aim of the experiment was to assess the short-term performance of Acacia karroo seedlings under different environmental conditions and the implications of such factors on the long-term recruitment of plant species in savanna rangelands. There were no significant treatment effects on the survival of A. karroo seedlings. Using stem length and basal diameter as growth parameters, it was observed that irrigation enhanced both variables, while nitrogen fertilization did not have any significant effects. Clipping, grass competition and their interaction greatly suppressed the growth of the seedlings. Clipping increased the mean stem length when they were irrigated and fertilized. Control and fertilized plants had the highest stem length in the absence of grass competition, while grass competition combined with clipping resulted in the lowest stem length in both irrigated and nonirrigated plants. It was concluded that in the presence of grass competition, controlled browsing could be a viable solution to the problem of bush encroachment in savanna rangelands. Résumé Les effets de l'irrigation, d'une fertilisation à l'azote, de la compétition avec l'herbe et de la taille ont étéétudiés pendant une saison de croissance dans la ferme expérimentale de l'Université de Fort Hare, dans la Province du Cap oriental, en Afrique du Sud. Le but de l'expérience était d'évaluer les performances à court terme de jeunes plants d'Acacia karroo dans différentes conditions expérimentales, et les implications de ces facteurs sur le recrutement à long terme d'espèces végétales dans des pâturages de savane. Il n'y a pas eu d'effet significatif des traitements sur la survie des plants d'A. karroo. En utilisant la longueur des troncs et le diamètre de la base comme indicateurs de croissance, on a observé que l'irrigation augmentait les deux variables, alors que la fertilisation à l'azote n'avait aucun effet significatif. La taille, la compétition avec l'herbe et leur interaction supprimait fortement la croissance des jeunes plants. La taille augmentait la longueur moyenne des troncs lorsqu'ils étaient irrigués et fertilisés. Les plants témoins et les plants fertilisés avaient les troncs les plus longs en absence de toute compétition avec des herbes, alors que cette dernière, combinée avec la taille, aboutissait à la longueur la plus petite des troncs, chez les plants irrigués ou non. On en a conclu qu'en cas de compétition avec des herbes, un pâturage contrôlé pourrait être une solution viable au problème de l'envahissement des broussailles dans les pâturages de savane. [source]

The Role of Short-Termism in Financial Market Crises

AUSTRALIAN ACCOUNTING REVIEW, Issue 4 2009
John Nesbitt
The purpose of this paper is to examine the contribution short-termist behaviours have had in various financial market crises. The early warning signs and drivers of short-termism are investigated, as well as ways to mitigate short-termist behaviour and consequences in the future. Short-termism as defined for the purposes of this paper is the excessive focus on short-term performance, earnings and other metrics at the expense of attention being given to the development of a long-term strategy that promotes sustainable long-term value creation. [source]

Strategy Tradeoffs in the Knowledge and Network Economy

BUSINESS STRATEGY REVIEW, Issue 1 2001
Øystein D. Fjeldstad
In traditional "value chain" firms, the main activity tradeoff is between differentiation and low cost. Increasingly, however, firms are creating customer value through networks (eg AOL) or by providing knowledge-based solutions for customers (eg venture capital firm Kleiner Perkins). This article discusses the quite different activity tradeoffs faced by these "value networks" and "value shops". It then explores the tradeoff between exploitation (focusing on short-term performance) and exploration (focusing on transcending short-term activity tradeoffs). Finally, in reviewing the implications for managers, it discusses the problem of trying to manage different types of business (value chains, networks and shops) within the same corporation. [source]