2001, Cost of Capital and Management

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2001

Cost of Capital

Management

Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

FEBRUARY 7, 2017

Companies deliver superior results when executives manage for long-term value creation and resist pressure from analysts and investors to focus excessively on meeting Wall Street’s quarterly earnings expectations. This has long seemed intuitively true to us. The returns to society and the overall economy were equally impressive.

Long-term

Long-term EPS Short-term Management

The Real Reasons Companies Are So Focused on the Short Term

Harvard Business Review

DECEMBER 13, 2017

Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. In contrast, companies with a long-term orientation are rewarded with a lower cost of capital, which allows them to afford more innovation—a virtuous cycle.

Short-term

Short-term Decentralization Company Trends

Leadership Digital

Finally, Proof That Managing for the Long Term Pays Off

The Real Reasons Companies Are So Focused on the Short Term

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