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

Harvard Business Review

However, firms can efficiently increase margin growth without much revenue growth by managing to squeeze out their fixed costs to service the same level of output. Many compensation plans reward managers for higher earnings and higher stock prices, as opposed to rewarding them for adding long-term value to the firm.

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What Your Stock Price Is Really Means

Harvard Business Review

There is a fascinating relationship between executives and the stock prices of the companies they manage. On the one hand, executives generally want their stocks to rise, affirming the perceived health of the enterprise they run and padding their remuneration. Next, compare the expectations of the market with those of management.

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