Effects of Horizon Preferences on Project Funding Decisions

Abstract

This study examines the effects of employees’ and their superiors’ individual horizon preferences on their project funding decisions. This study finds that short-term oriented employees will be more likely to adapt their decisions to their superiors’ horizon preferences than will long-term oriented employees. The findings contribute to the literature both by documenting the manner in which employees’ horizon preferences and their superiors’ horizon preferences interact to affect their project funding decisions and by shedding light on the moderating effects of individuals’ horizon preferences on the effects of organizational information that suggests to the subordinates the horizon preferences of their superior