The Long Clock · Chapter Five

When the Clock Lengthens

Ammanuel Santa Anna · ORCID 0009-0008-3244-0306

Chapter Five of The Long Clock: Purpose, Patient Capital and the Time a Company Needs.

Abstract

In 2017 Caroline Flammer, then at Boston University, and Pratima Bansal, at Western University in Canada, published a paper in the Strategic Management Journal that asked a question most of the debate about short-termism had only asserted an answer to. If a company's executives are made to think longer, does the company become more valuable? The question is hard to answer because companies that choose long-term pay differ from companies that do not, and the difference, rather than the pay, may explain how they perform. Flammer and Bansal found a way round it. They studied shareholder proposals asking for long-term executive compensation that passed or failed by a very small margin of votes.

Read the PDFRead the whole bookdoi:10.5281/zenodo.23989082

Cite this chapter

Santa Anna, A. (2026). When the Clock Lengthens. In The Long Clock. Luminous Prosperity Inc. https://doi.org/10.5281/zenodo.23989082

@incollection{santaanna2026the5,
  author    = {Santa Anna, Ammanuel},
  title     = {When the Clock Lengthens},
  booktitle = {The Long Clock},
  chapter   = {5},
  publisher = {Luminous Prosperity Inc.},
  year      = {2026},
  doi       = {10.5281/zenodo.23989082},
  url       = {https://business.hautelumiere.life/library/the-long-clock/05-when-the-clock-lengthens/}
}

References

  1. Flammer, C., & Bansal, P. (2017). Does a long-term orientation create value? Evidence from a regression discontinuity. Strategic Management Journal, 38(9), 1827–1847. https://doi.org/10.1002/smj.2629
  2. Thomsen, S., Poulsen, T., Børsting, C., & Kuhn, J. (2018). Industrial foundations as long-term owners. Corporate Governance: An International Review, 26(3), 180–196. https://doi.org/10.1111/corg.12236
  3. Hansmann, H., & Thomsen, S. (2013). Managerial distance and virtual ownership: The governance of industrial foundations. SSRN. https://doi.org/10.2139/ssrn.2246116
  4. Asker, J., Farre-Mensa, J., & Ljungqvist, A. (2015). Corporate investment and stock market listing: A puzzle? The Review of Financial Studies, 28(2), 342–390 (published online 2014). https://doi.org/10.1093/rfs/hhu077
  5. Graham, J. R., Harvey, C. R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of Accounting and Economics, 40(1–3), 3–73. https://doi.org/10.1016/j.jacceco.2005.01.002
  6. Edmans, A. (2011). Does the stock market fully value intangibles? Employee satisfaction and equity prices. Journal of Financial Economics, 101(3), 621–640. https://doi.org/10.1016/j.jfineco.2011.03.021

Every chapter of The Long Clock

  1. Chapter OneTwo Sentencesdoi:10.5281/zenodo.23989074
  2. Chapter TwoThe Company Was Chartered for Somethingdoi:10.5281/zenodo.23989076
  3. Chapter ThreeFour Objections, Answered Plainlydoi:10.5281/zenodo.23989078
  4. Chapter FourTwo Clocks in Every Companydoi:10.5281/zenodo.23989080
  5. Chapter FiveWhen the Clock Lengthensdoi:10.5281/zenodo.23989082
  6. Chapter SixThe Foundation and the Trustdoi:10.5281/zenodo.23989084
  7. Chapter SevenHanding It Ondoi:10.5281/zenodo.23989086
  8. Chapter EightThe Quarterly Questiondoi:10.5281/zenodo.23989088
  9. Chapter NineThe Field Manualdoi:10.5281/zenodo.23989090
  10. Chapter TenHow to Know It Workeddoi:10.5281/zenodo.23989092
  11. Chapter ElevenThe Hard Conversationsdoi:10.5281/zenodo.23989094
  12. Chapter TwelveA Household on the Long Clockdoi:10.5281/zenodo.23989096
  13. Chapter ThirteenWho Holds the Long Clockdoi:10.5281/zenodo.23989098
  14. The WorkbookThe Workbookdoi:10.5281/zenodo.23989100

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The licence

Free to read, share, quote, translate and teach, non-commercially, for ever, under the Luminous Library Licence 1.0. Every other right is the Author’s. Deposited on Zenodo in the Luminous Prosperity community.