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Older and Wiser: How CEO’s Time Perspective Influences Long-Term Investments in Environmentally Responsible Technologies

Ortiz-de-Mandojana, Natalia, Bansal, Pratima and Aragon-Correa, Juan Alberto (2018) Older and Wiser: How CEO’s Time Perspective Influences Long-Term Investments in Environmentally Responsible Technologies British Journal of Management.

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Abstract

Most theories of corporate governance argue that Chief Executive Officers (CEOs) take less risk as they near the end of their career, and therefore are less likely to make major investments. This prediction is based on decisions related to firm-specific benefits; however, it may not be generalizable to decisions that involve broad societal goals. In terms of societal investments, CEOs with a longer time perspective may be more likely, rather than less likely, to invest. In this paper, we argue that a CEO’s future time perspective is fostered by shorter career horizons, longer tenures, higher organizational ownership, and less short-term compensation. We test these hypotheses on 150 observations from the U.S. investor-owned electric power generation sector over a three-year unbalanced sample (64.3% of the population). We applied random-effects generalized least squares (GLS) estimations to test our hypotheses, and found support for three out of four hypothesized relationships.

Item Type: Article
Divisions : Faculty of Arts and Social Sciences > Surrey Business School
Authors :
NameEmailORCID
Ortiz-de-Mandojana, Natalia
Bansal, Pratima
Aragon-Correa, Juan Albertoj.aragon@surrey.ac.uk
Date : 1 March 2018
Identification Number : 10.1111/1467-8551.12287
Copyright Disclaimer : © 2018 British Academy of Management. Published by John Wiley & Sons Ltd, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA, 02148, USA
Uncontrolled Keywords : Corporate environmental investments; Time perspective; CEOs career horizon; Tenure; Ownership; Compensation
Depositing User : Clive Harris
Date Deposited : 14 Feb 2018 14:40
Last Modified : 14 May 2018 10:25
URI: http://epubs.surrey.ac.uk/id/eprint/845840

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