Chakravarty, Anindita; Grewal, Rajdeep - In: Management Science 57 (2011) 9, pp. 1594-1609
The budgets for research and development (R&D) and marketing should be determined by managers to attain product market advantages. However, in response to investor expectations for short-term stock returns, managers may modify these budgets myopically to avoid unexpected short-term earnings...