Remove Cost of Capital Remove Long-term Remove Management Remove Technology
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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

The McKinsey Global Institute, in conjunction with FCLT Global, recently released research stating that long-term-oriented companies perform better than those that focus on short-term results. As I said earlier, measuring a company’s short-term orientation is incredibly tricky.

EPS 8
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Should Companies Retain "Strategic" Cash?

Harvard Business Review

As long as the CFO can stipulate that the company does not intend to repatriate the cash, it avoids the incremental tax that will be levied due to the territorial system of U.S. high technology or pharmaceutical) that are investing in projects with uncertain long-range payoffs. It can: Save Taxes.

Company 13
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4 Ways Leaders Can Get More from Their Company’s Innovation Efforts

Harvard Business Review

Even if executives try to prioritize it, innovation often gets crowded out by more “urgent” short-term pressures. For any business to succeed over the long term, it must earn a return that exceeds its cost of capital. That’s why successful innovators prepare for irrelevance long in advance.

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The Comprehensive Business Case for Sustainability

Harvard Business Review

Today’s executives are dealing with a complex and unprecedented brew of social, environmental, market, and technological trends. These require sophisticated, sustainability-based management. ” Improving risk management. Investing in sustainability is not only a risk management tool; it can also drive innovation.

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The Real Reasons Companies Are So Focused on the Short Term

Harvard Business Review

Some argue that profits are stagnant because of short-termism—that decades of focusing on current profits over long-run innovativeness has resulted, now, in companies that are hollowed out. Rather, the solution is to ensure that companies whose growth derives from R&D hire CEOs with technological domain expertise.

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Why Those Guys Won the Economics Nobels

Harvard Business Review

In the long-version explanation of the prizes published by the Nobel committee last fall, Campbell was cited more often than anybody else, apart from the three winners. 2 is this distinction between short-term vs. long-term predictability. That was another discovery of the 1980s that was inconsistent with the paradigm.

CAPM 8