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Conditions for rational investment short-termism

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  • George Christodoulakis

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  • George Christodoulakis, 2012. "Conditions for rational investment short-termism," Annals of Finance, Springer, vol. 8(1), pages 15-29, February.
    • Handle: RePEc:kap:annfin:v:8:y:2012:i:1:p:15-29
    DOI: 10.1007/s10436-011-0179-5
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    References listed on IDEAS

    as
    1. Robert Gibbons & Kevin J. Murphy, 1992. "Does Executive Compensation Affect Investment?," Journal of Applied Corporate Finance, Morgan Stanley, vol. 5(2), pages 99-109, June.
    2. George Christodoulakis, 2006. "Generalised Rational Bias in Financial Forecasts," Annals of Finance, Springer, vol. 2(4), pages 397-405, October.
    3. Wahal, Sunil & McConnell, John J., 2000. "Do institutional investors exacerbate managerial myopia?," Journal of Corporate Finance, Elsevier, vol. 6(3), pages 307-329, September.
    4. Graham Elliott & Allan Timmermann & Ivana Komunjer, 2005. "Estimation and Testing of Forecast Rationality under Flexible Loss," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 1107-1125.
    5. Clive W.J. Granger, 1999. "Outline of forecast theory using generalized cost functions," Spanish Economic Review, Springer;Spanish Economic Association, vol. 1(2), pages 161-173.
    6. Erik Bohlin, 1997. "A Survey of Managerial Incentives and Investment Bias - Common Structure but Differing Assumptions," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 24(2), pages 197-248.
    7. Christoffersen, Peter F. & Diebold, Francis X., 1997. "Optimal Prediction Under Asymmetric Loss," Econometric Theory, Cambridge University Press, vol. 13(6), pages 808-817, December.
    8. Miles, David, 1993. "Testing for Short Termisn in the UK Stock Market," Economic Journal, Royal Economic Society, vol. 103(421), pages 1379-1396, November.
    9. Himmelberg, Charles P & Petersen, Bruce C, 1994. "R&D and Internal Finance: A Panel Study of Small Firms in High-Tech Industries," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 38-51, February.
    10. Miles, David, 1995. "Testing for Short Termism in the UK Stock Market: A Reply," Economic Journal, Royal Economic Society, vol. 105(432), pages 1224-1227, September.
    11. Satchell, S E & Damant, D C, 1995. "Testing for Short Termism in the UK Stock Market: A Comment," Economic Journal, Royal Economic Society, vol. 105(432), pages 1218-1223, September.
    12. Erik Bohlin, 1997. "A Survey of Managerial Incentives and Investment Bias — Common Structure but Differing Assumptions," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 24(2), pages 197-248, March.
    13. Ryan, Harley Jr. & Wiggins, Roy III, 2001. "The influence of firm- and manager-specific characteristics on the structure of executive compensation," Journal of Corporate Finance, Elsevier, vol. 7(2), pages 101-123, June.
    14. Lundstrum, Leonard L., 2002. "Corporate investment myopia: a horserace of the theories," Journal of Corporate Finance, Elsevier, vol. 8(4), pages 353-371, October.
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    More about this item

    Keywords

    Investment horizon; Gamma; Generalized gamma; Exponential; LinEx; Loss function; Short-termism; G14; G31; G34;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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