Time horizons and technology investments / / Committee on Time Horizons and Technology Investments, National Academy of Engineering

• Record Nr.: UNINA9910965582103321
• Pubbl/distr/stampa: Washington, D.C., : National Academy Press, 1992
• ISBN: 9786610211517; 9781280211515; 1280211512; 9780309584104; 0309584108; 9780585119809; 0585119805
• Edizione: [1st ed.]
• Descrizione fisica: 1 online resource (118 p.)
• Disciplina: 600
• Soggetti: Business planning - United States; Capital investments - United States; Technological innovations - Economic aspects - United States; Competition - United States
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Note generali: Includes bibliographical references (p. 74-77).
• Nota di contenuto: TIME HORIZONS AND TECHNOLOGY INVESTMENTS -- Copyright -- Preface -- Contents -- Executive Summary -- 1 The Issue and the Approach -- THE APPROACH AND METHOD OF THE STUDY -- DO U.S. CORPORATE EXECUTIVES HAVE SHORT TIME HORIZONS? -- MACROECONOMIC EVIDENCE: RELATIVE RATES OF INVESTMENT IN FIXED CAPITAL AND R&amp -- D -- SUMMARY AND CONCLUSION -- 2 Explaining Time Horizons and Technology Investments -- WHAT IS "NEAR-TERM ORIENTED" MANAGEMENT AND GOVERNANCE? -- THE MECHANICS OF CAPITAL COSTS, RISK, AND THE SPECIAL CHARACTERISTICS OF INVESTMENTS IN TECHNOLOGY DEVELOPMENTS -- Perspectives on the Cost of Capital -- Financial Markets and Technology Investments -- Investment Hurdle Rates and Technology ; Investments -- DETERMINANTS OF COMPANY INVESTMENT TIME HORIZONS -- SUMMARY AND CONCLUSION -- 3 Company Time Horizons and Technology Investments: The Roles of Corporate Governance and Management -- THE IMPORTANCE OF GOVERNANCE: THE ROLES OF BOARDS OF DIRECTORS -- Boards of Directors' Choices and Time Horizons -- Compensation and Selection of Board Members -- THE PREROGATIVES OF MANAGEMENT AND CORPORATE TIME HORIZONS -- The Development and Execution of Corporate Strategy -- Design and Implementation of Career Development Systems and Compensation Schemes -- Decision-Making Methods and Performance Measurement -- SUMMARY AND RECOMMENDATIONS -- 4 Time Horizons and Cost of Capital -- FINANCIAL MARKETS AND TIME HORIZONS IN THE 1990S -- A COMPANY'S CONTROL OVER ITS COST OF CAPITAL -- Financial Markets, Technology, and Company Valuation -- Time Horizons, Technology Investments, and Ownership Structures -- THE ECONOMIC COST OF CAPITAL: NATIONAL DIFFERENCES AS A CRUCIAL ISSUE -- SUMMARY AND RECOMMENDATIONS -- 5 The Influences of Government Investments and Regulatory Policies on Corporate Time Horizons -- GOVERNMENT POLICIES AND A STABLE ENVIRONMENT FOR INVESTMENT.; The Mixed Impact of Regulation and the Legal Environment -- The Government's Role in the Creation of Stable Markets -- GOVERNMENT INVESTMENTS, COMPLEMENTARY ASSETS, AND PRIVATE-SECTOR TIME HORIZONS FOR INNOVATION -- Infrastructure -- Research and Development -- Time Horizons and the Public-Sector Investment Portfolio -- SUMMARY AND RECOMMENDATIONS -- 6 Summary Argument: Understanding Time Horizons and Technology Investments -- References -- Appendix A Cost of Capital-The Managerial Perspective -- ABSTRACT -- APPROACH -- THE INTERVIEWS -- Question 1: Is the Cost of Capital an Important Source of Competitive Disadvantage? -- Group 1: Cost of Capital is a Critical Competitive Factor -- Group 2: The Cost of Capital Is Not a Major Competitive Factor -- Group 3: The Mixed View -- Question 2: How Do the Firms that Emphasize the Competitive Impact of the Cost of Capital Manage the Problem? -- Question 3: What Accounts for the Differences in Views on the Cost of Capital? -- Industry Type -- Size -- Capital Intensity -- Financial Health and Capital Availability -- Market Leadership -- Conclusion -- NOTES -- REFERENCES -- Appendix B Biographical Information on Committee Members.
• Sommario/riassunto: It is frequently argued that U.S. corporations have shorter time horizons for planning and investment than their Japanese and German competitors. This argument, though widely accepted in studies of U.S. competitiveness, has rarely been examined in depth. Time Horizons and Technology Investments explores the evidence that some U.S. corporations consistently select projects biased toward short-term return and addresses factors influencing the time-related preferences of U.S. corporate managers in selecting projects for investment. It makes recommendations to policymakers and managers about policies to mitigate negative external influences and about strategies to remove internal biases toward noncompetitive decisions.