The Real Reasons Companies Are So Focused on the Short Term
Harvard Business Review
DECEMBER 13, 2017
Quarterly profits have only increased 5% since 2012 , but investors’ valuations of those profits (as measured by earnings per share) has increased 59% over the same period. Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies.
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