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How Incentives for Long-Term Management Backfire

Harvard Business Review

The normal culprits for short-termism are short-term-minded hedge-fund managers and activist shareholders, as well as CEOs worried about big bet investments with uncertain paybacks.

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How Amazon Trained Its Investors to Behave

Harvard Business Review

So when Amazon reports below-consensus earnings, as it did Tuesday, and the share price jumps, as it did after-hours Tuesday and again Wednesday morning, the reaction isn't quite the puzzle it seems. With Amazon, though, nobody emphasizes EPS. How has Bezos done this?