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Strong Dollar, Weak Thinking

Harvard Business Review

This puts downward pressure on stock prices because with lower EPS growth, shareholder expectations of future growth drop, lowering EPS multiples and hence stock prices. So foreign operations need to contribute meaningfully over the long term to shareholders’ 20 times expectations.

EPS 8
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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. Getting the measurement right is central to providing convincing evidence on the debate over short-termism.

EPS 8
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Yes, Short-Termism Really Is a Problem

Harvard Business Review

With Hillary Clinton’s tax proposals to encourage longer-term investing , the debate over whether American business is too fixated on the short term has moved from the dimly lit offices of earnest policy wonks into the klieg lights of U.S. R&D spending falls into the long-term bucket. primary season.

Hedge 8
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How Incentives for Long-Term Management Backfire

Harvard Business Review

To hear long-term investors tell it, company executives have embraced short-term thinking like never before. Two obvious pieces of evidence: The use of earnings for share buybacks that cost more than they’re worth, and dividend increases that divert cash from long-term investment.

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You Can't Impress Stock Analysts.and Shouldn't Try

Harvard Business Review

Nobody writes a paean to the search for 9 percent EPS growth. But the pressure to "impress analysts" means that leaders can't pursue the long-term perspective that creates truly lasting, great, and sustainable organizations. want people to focus on cash flow, which is a much longer-term measure than short-term profit.".

GAAP 8
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Business Needs to Do What Government Can't

Harvard Business Review

In short, change would happen, but at a dangerously slow pace. The oft-cited CEO of Unilever, Paul Polman, announced the company's Sustainable Living Plan , saying to investors: "if you don't buy into [our long-term value model], I respect you as a human being, but don't put your money in our company.". Breakthrough Institutions.

EPS 8
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Managing in an Age of Winner-Take-All

Harvard Business Review

Consider management actions such as cutting jobs and investment as a response to currency fluctuations and the resulting accounting impact of those cuts on earnings per share (EPS). Share buybacks are preferred to investment in innovation, entrepreneurship, and value creation.