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&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.