Premium
Managers' conservatism and corporate performance
Author(s) -
Sturdivant Frederick D.,
Ginter James L.,
Sawyer Alan G.
Publication year - 1985
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250060103
Subject(s) - conservatism , value (mathematics) , accounting , empirical research , business , scale (ratio) , management , economics , political science , law , computer science , quantum mechanics , machine learning , politics , physics , philosophy , epistemology
This article argues that conservatism as a personal value among senior managers significantly affects corporate performance. A scale to measure conservatism was developed and its measurement properties were tested on several hundred executives. Empirical results were consistent with the hypotheses that conservatism among senior management teams is negatively associated with the firm's social responsiveness as well as certain aspects of financial performance.