Document Type
Document
Publication Date
2017
Abstract
Perhaps no topic in corporate governance has garnered more and stronger reactions than the debate over whether shorttermism is an issue for public corporations, the public markets, or the economy.
From the explosion in recent years of buybacks and dividends, to the declines in investment in research and development and capital expenditures, and unprecedented corporate profits and cash holdings, some argue that capitalism has focused in on the wrong outcomes, or worse, been coopted by the few at the expense of the many.
This essay will lay out the data and arguments over short-termism and what structural changes may be needed to foster longtermism in public companies and to encourage the long term growth of the economy needed to build wealth in a durable manner.
Recommended Citation
Douglas Chia,
Short-Termism,
(2017).
Available at:
https://scholarship.law.columbia.edu/global_markets_corporate_ownership/28