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Effects of Corporate Short-Termism on Organisational Resilience: Evidence from Listed Companies in Zimbabwe

Author

Listed:
  • Trustmore Bekapi

    (Graduate School of Business, Bindura University of Science Education)

Abstract

This study examines the effects of corporate short-termism on organisational resilience, using a unique panel data set on a sample of 36 listed companies purposefully drawn from an array of industries in Zimbabwe from 2010 to 2018. By using the Arellano-Bover/Blundell-Bond System Generalised Methods of Moments (Sys-GMM) dynamic estimator, this study effectively addresses autocorrelation, hetero scedasticity and endogeneity in the analysis of panel data. The main results of this study suggest that strategic capital expenditures generate more benefits than tactical capital expenditures. However, additional results reveal that there is no material difference in the benefits generated by TCEs and SCEs when companies invest consistently. More importantly, the results of this study suggest that maintaining a right balance between short-term and long-term goals consistently guarantees organisational resilience.

Suggested Citation

  • Trustmore Bekapi, 2023. "Effects of Corporate Short-Termism on Organisational Resilience: Evidence from Listed Companies in Zimbabwe," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(10), pages 252-271, October.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:10:p:252-271
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    References listed on IDEAS

    as
    1. Natalie Slawinski & Pratima Bansal, 2015. "Short on Time: Intertemporal Tensions in Business Sustainability," Organization Science, INFORMS, vol. 26(2), pages 531-549, April.
    2. Graham, John R. & Harvey, Campbell R. & Rajgopal, Shiva, 2005. "The economic implications of corporate financial reporting," Journal of Accounting and Economics, Elsevier, vol. 40(1-3), pages 3-73, December.
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