Keywords
corporate strategic change
agency costs
performance pressure
How to Cite
Abstract
Sustained corporate development depends on strategic change, yet differences in managers' time horizons may materially shape this process. Using A-share listed firms from 2014 to 2024 as the research sample, this study examines whether and how managerial myopia constrains corporate strategic change. The empirical results show that managerial myopia significantly inhibits strategic change. Mechanism tests indicate that this inhibitory effect operates mainly through two channels: higher agency costs and greater performance pressure. Heterogeneity analyses further show that the negative effect of managerial myopia is more pronounced among firms with lower executive shareholding and lower analyst coverage, and among non-state-owned enterprises. This study enriches the literature on the economic consequences of managerial myopia and provides governance implications for promoting long-term strategic transformation.
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