If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -One stream of research has claimed share price to be long-term oriented, whereas, in contrast, another has found it to be short-term oriented. Through in-depth analysis, this study aims to reveal the grounds for each of these two claims by studying the time-related constructs of two parties: executives of a company and outsider commentators of that company. Design/methodology/approach -The study employs a social constructionist approach and incorporates the sociology of time in the analysis of case data focused on a publicly quoted company. Data drawn from outsider commentators provide additional focus. Findings -The executives studied in the publicly-quoted company construct share price as long-term oriented through three processes: linguistic, practice-oriented functional, and morality-related functional. However, these executives construct time through a present-based rationality, which means that effective and efficient present actions are assumed to form the basis for a successful future. Outsider commentators indicate two myopia-related risks in this rationality: current, present day pressing issues are not deliberated upon in a wider framework of long-term plans, and it is not possible to relinquish the present and focus only on the future, free from present concerns. The long-term orientation of share price is constructed by executives as instrumental through processes that are tied to the present-based rationality with its myopia-related risks.Research limitations/implications -By showing the long and short time orientations of share price, the paper provides grounds for a subsequent analysis of the origins of these orientations within the minds of actors. Practical implications -The study provides guidance on avoiding myopia when using share price-related compensation systems. Originality/value -The study contributes to the performance measurement and corporate governance literatures by analysing, for the first time, share price from the perspective of executives themselves. In addition, the views of outsider commentators are considered.
COVID-19 has affected people, businesses and governments worldwide, causing widespread uncertainty in the business world. Here we look at COVID-19 uncertainty using the tool of real options. We focus on the perspective of governments, particularly the Finnish Government, which in its decisions has endeavoured to keep many of its options open in this situation. We describe the real options relevant here, how uncertainty impacts them and also how selected cognitive biases may influence the decisions through the use of such real options. The real options discussed are the option to delay, the time-to-build option, the option to alter scale and the option to switch. The cognitive biases relevant here are the status quo bias and the confirmation bias. The study extends the research on real options by scrutinising a highly topical case. The study also offers guidance to governments on how to respond to the COVID-19 crisis. Moreover, the study provides suggestions on how to evaluate governmental decisions in the COVID-19 crisis. This study addresses a highly topical phenomenon, the COVID-19 crisis, in order to shed light on how real options can be used as a tool to analyse such a crisis.
PurposeThis paper seeks to elaborate on how subject positions promoting shareholder value are infused with an outcome focus.Design/methodology/approachThe study employs Foucault's perspectives on government and the interrelations between objectivity and subjectivity in the analysis of in‐depth case data gathered in one shareholder value‐oriented‐listed company and one non‐listed company.FindingsThe outside financial market discipline that objectifies shareholder value‐oriented company executives makes them subjects in their own organisation, allowing them to redirect discipline onwards and thereby objectify their subordinates. The non‐listed company executives, due to the relatively closed governance structure of their company and the lack of outside ownership, are not subject to such continuous outside discipline; they lack the same access to the means to create tangible outcomes within their organisations. The subject positions promoting shareholder value are focused on outcomes, whereas the non‐listed company subject positions are focused on processes.Research limitations/implicationsThe subject positions of actors within different types of non‐listed companies and listed companies without a shareholder focus form a target for future studies.Originality/valueThe study contributes to the literatures on manager subject position formation and shareholder value. These contributions are achieved by uncovering a novel consequence of subject position formation and by revealing a mechanism by which outcome focus is tied with shareholder value.
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