DesJardine and Bansal (2015)

DesJardine, Mark and Tima Bansal.  “Failing to Meet Analysts’ Expectations:  How Financial Markets Contribute to Corporate Short-Termism.”  Working paper (Ivey School of Business), 2015.

From the authors' abstract:  "[W]e argue that the mechanism to corporate short-termism is through the performance expectations of financial analysts. We argue that organizational time horizons shorten when firms fail to meet analysts' performance expectations, and lengthen when they exceed analysts' performance expectations. However, this effect is asymmetric -underperformance has a more potent effect than over-performance on organizational time horizons. To test these and other hypotheses, we analyze 3,136 quarterly earnings conference call transcripts of 98firms in extractives industries between 2006 and 2013."