Are Founder-Led Firms Less Susceptible to Managerial Myopia?
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Abstract
Considerable evidence suggests that CEOs often behave myopically. It is open to debate, however, whether managerial myopia is equally prevalent among founder-led firms. Drawing on agency theory and stewardship theory, we analyze whether founder-led firms are less likely than nonfounder-led firms to cut R&D expenditures in order to meet the short-term earnings goals suggested by these firms’ past performance histories. Our analysis of Standard & Poor’s 1,500 companies from 1992 to 2013 indicates that myopia is an enduring phenomenon and prevalent among very large companies. However, founder-led firms are less likely than nonfounder-led firms to exhibit myopic behavior.
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This record is for a(n) postprint of an article published in Entrepreneurship Theory and Practice on 2018-10-28; the version of record is available at https://doi.org/10.1177/1042258718806627.
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Schuster, Charlotte L., et al. "Are Founder-Led Firms Less Susceptible to Managerial Myopia?." Entrepreneurship Theory and Practice, 2018-10-28, https://doi.org/10.1177/1042258718806627.
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Entrepreneurship Theory and Practice
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