The impact of investor impatience and environmental turbulence on myopic marketing management and stock performance

We show that managers are less likely to myopically manage marketing spending in response to short-termism pressure from institutional investors when market turbulence is high. In addition, managers are less likely to myopically manage R&D spending in response to such investors' pressure in technologically turbulent environment. Furthermore, we find that long-term stock performance suffers with myopic marketing management and that (a) the total financial impact to myopic management of marketing spending worsens as market turbulence increases and (b) the total financial impact to myopic cuts in R&D spending worsens as technological turbulence increases. Our results also show that myopic marketing management is rewarded by positive short-term stock performance. However, the stock market discounts the performance when it senses instances of myopic marketing management