Remove Cost of Capital Remove Creative Accounting Remove Innovation Remove Productivity
article thumbnail

We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

For instance, McKinsey considered a smaller ratio of capital expenditure to depreciation to indicate short-term thinking, because it’s assumed that short-term companies will invest less, and less consistently, than other companies. Creative accounting measures. What would better measures be? Corporate culture.

EPS 8