Incentives, Short-termism & Investment decisions 

Custom Research Paper Writing Service 

Due date: 11th / January / 2021.                               Word upper limit: 2000 words

Don't use plagiarized sources. Get Your Custom Essay on
Incentives, Short-termism & Investment decisions 
Just from $13/Page
Order Essay




Incentives, Short-termism & Investment decisions 

Exchange students can write up to 1000 words more.


One of the most fundamental concerns with corporations is that they focus on short-term profit rather than investing for the long-term. This is a particular concern in the 21st century, where innovation is particularly critical for competitive success. Moreover, allegations of shorttermism have serious social repercussions. Long-term investments, such as developing blockbuster drugs, or training workers, typically benefit stakeholders as well as shareholders, but short-term profit only goes to shareholders. Short-termism can reduce a firm’s growth opportunities and give rise to failure.


Incentives shape top managers’ corporate decisions, including investment decisions. Poor incentives can worsen corporate short-termism while right incentives can drive top managers towards long term investments that expand the growth potential of the firm and increase its market value. Investment decisions are though risky and frequently fail, which can impact the firm’s market value negatively. An optimal incentive system should equally lower the chance of imprudent investment decisions.


Given this background, you task in the coursework is to:


  • Explain the short-termism hypothesis, critically explain whether principal-agent issues may contribute to short-termism, and explore its consequences for firm performance;


  • Analyse how modern firms seek to deal with the principal-agent problem. Your analysis should explicitly distinguish between the level and structure of pay.


  • Explain how firms may design a compensation scheme to reduce short-termism by combining reward instruments such as stocks, stock options, restricted stocks and inside debt. Justify your proposal by referring to the academic literature.


  • Explain how your proposal can strengthen firm resilience and enable firms to better deal with deep recessions such as the Covid-19 recession.


A number of notes will be placed on the course webpage to guide you through your research and help you with the literature on the short-termism hypothesis and CEO’s pay. A note will specify marking guidelines in details. You should follow the guidelines.


Coursework should be submitted online by 3pm on Monday 11th January 2020 onto Blackboard and the marks and comments will be released online via Blackboard on Monday 1st February 2021.


Dr Reza Salehnejad

Alliance Manchester Business School

Coursework distributed: October 2021.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Home Work Stand
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Health Care
Very well written and done earlier than scheduled. Thank you!
Customer 452445, January 12th, 2022
Computer science
The work and detail provided in the assignment were exactly what I was looking for! Very pleased with the whole process and the data which was analyzed. I could not have asked for a better writer, thank you again for your hard work, and Happy Holidays
Customer 452445, December 10th, 2021
Human Resources Management (HRM)
This has been the greatest help while I am recovering from an illness. Thank your team so much.
Customer 452445, June 6th, 2022
Classic English Literature
Wonderful writer. Pay attention to detail. Does not plagiarize. Always completes work on time!
Customer 452445, March 3rd, 2022
Perfectly done. I would love to continue working with this writer thought out the 11-week course. Thank you.
Customer 452445, October 24th, 2021
Classic English Literature
The writer wrote a perfect paper in short amount of time.
Customer 452445, December 14th, 2021
Business Studies
It's the second time I use this service and it does not let me down. Work quality is so good for its price!
Customer 452445, June 6th, 2022
The writer has done an amazing job. I am very pleased!
Customer 452445, January 11th, 2022
Writer was cooperative and got me an A on my paper.
Customer 452445, December 23rd, 2021
It was a very long paper, but she followed all the instructions, and she even finished the paper 3 days before the due date
Customer 452445, June 8th, 2022
Criminal law
I got an A. I recommend homeworkstand.
Customer 452445, October 31st, 2021
I am so pleased with your services Thank you so much for a well-done job with my papers!
Customer 452445, January 12th, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Order your essay today and save 15% with the discount code ESSAYHELP