Self-serving attributions, managerial cognition, and company performance

• Published in: Strategic management journal Vol. 12; no. 3; pp. 219 - 229
• Main Authors: Clapham, Stephen E., Schwenk, Charles R.
• Format: Journal Article
• Language: English
• Published: Chichester John Wiley & Sons, Ltd 01-03-1991; John Wiley and Sons; Wiley; John Wiley; Wiley Periodicals Inc
• Subjects: Administrative agencies; Annual reports; Applied sciences; Attribution theory; Business structures; Cognition; Computer science; control theory; systems; Corporate profits; Corporate strategies; Earnings per share; Exact sciences and technology; Industrial regulation; Perceptions; Public utilities; Shareholders; Software; Stock prices; Stockholders; Strategic management; Case study; Strategy; Staff management; Management; Performance; Industrial policy
• ISSN: 0143-2095; 1097-0266
• DOI: 10.1002/smj.4250120305

Past research using managers' attributions for good and poor performance in annual reports has repeatedly demonstrated that management takes credit for good outcomes. However, there is disagreement about whether this pattern of attributions reflects attempts to manage impressions in stakeholders or biased perceptions on the part of management, and whether it is associated with increases or decreases in future performance. In this study, attributions in letters to shareholders in the annual reports of public utilities were analyzed. The results showed the same general pattern of attributions as was found in previous studies. However, the relationship between this pattern of attributions and performance (earnings per share growth) was generally negative. Implications of these results for future research are discussed.