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ISSN 2063-5346
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OVERCOMING INDUSTRIAL MYOPIA (REMEDIES FOR MYOPIA PROBLEMS IN CHEMICAL COMPANIES)

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Hartiya Gesuri 1 , Putri Elysa Tarigan 2 , Iskandar Muda 3
» doi: 10.31838/ecb/2023.12.s1-B.432

Abstract

The purpose of this study is to overcome the problem of Myopia in chemical companies. The chemical industry is currently growing in a widespread and integrated manner. The rapid development of industrial and semi-finished materials has been a driving factor for the construction of these industrial units driving contemporary economic growth in most major countries and creating jobs, becoming a focal point for the public, government officials and non-governmental organizations. Myopia is a well-known, dysfunctional side effect of the financial results control system. Despite these problems, managers use control of financial results to good effect. Control of financial results is emphasized on current accounting profit which can cause managers to have an excessive short-term orientation in every decision making. Research shows that the stock market also evaluates announcements of strategic significance, such as investments in capital or research and development (R&D) projects, new management employees, and mergers and divestitures. In other words, if management is deemed to be making sound long-term decisions, the market is likely to factor in its judgment of what the long-term path to earnings is, even though the result may not be wholly – or even sufficiently – in short-term gains with immediate effects.

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