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Waseda Organizational and Financial Economics Seminar: “Short Termism as a Governance Problem: Temporal Calibration and the Double Contingency” (November 27)

Waseda Organizational and Financial Economics Seminar:
“Short Termism as a Governance Problem: Temporal Calibration and the Double Contingency” (November 27)

講演者 / Speaker

JACKSON, Gregory         (Professor, Freie Universität Berlin)

日 時 / Date & Time

Monday, 27 November 2017, 13:00 – 14:30

会 場 / Venue

Rm. 1111 on the 11th floor, Building #11, Waseda University

主 旨 / Outline

“Short Termism as a Governance Problem: Temporal Calibration and the Double Contingency”

Short-termism  involves  situations  where  corporate  stakeholders  – investors, managers, board members, and auditors – show a preference  for  strategies  that  add  less  value  but  have  an  earlier  payoff  relative  to  strategies  that  would  add  more  value  in  the  long  run.  Short-termism  has  been  debated  frequently,  but has received surprisingly little academic attention. Although researchers tend to agree on the definition of the concept, they do not agree on how to demonstrate the sub-optimal nature of these decisions. Establishing whether short-term decisions are actually detrimental to long-term value creation relies largely on counterfactual reasoning.  This  paper contends  that  short-termism  is  caused  by  a  self-reinforcing shortening of time-horizons produced by temporal calibration.  Calibration involves a social interaction between  various shareholders  (pension  funds,  private equity,  hedge  funds) and managers.  Short -term behavior is amplified by gatekeepers mediating these relationships – securities analysts, credit rating agencies, auditors, who frame time horizons through information, accounting and reporting formats.  Short-termism therefore should be regarded as a social process, in which a certain behavior  is  reinforced  by  the  reaction  of  others.  Time horizons thus reflects the  complex interaction between the incentives and orientations of different stakeholders. This relational character of short-termism helps explain  why  it  is  hard  both  to  measure  and  difficult  to  address through simple policy instruments aimed at one group of stakeholders.  No  single  policy  in  isolation  is  likely  to  curb  short-termism among  managers,  shareholders  and  gatekeepers.

プログラム / Schedule

13:00 Opening Remarks (Hideaki Miyajima (Waseda University))
13:05 Presentation
14:05 Question-and-answer session
14:25 Concluding Remarks(Hideaki Miyajima (Waseda University))

対 象 / Prospected Audience

Faculty and staff members of a university, grad students, the general publics

主 催 / Organizer

Research Institute of Business Administration,Waseda University
Waseda Institute for Advanced Study,Waseda University

申込み / Registration

Free of charge. Please come to the event venue directly.

Dates
  • 1127

    MON
    2017

Place

Rm. 1111 on the 11th floor, Building #11, Waseda University

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