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What Shareholder Value is Really About

Harvard Business Review

Critics imply that managing for shareholder value is all about maximizing the short-term stock price. While some executives allow that they should not manage to increase the short-term stock price, they remain reluctant to embrace the concept of managing for shareholder value. Creating Shareholder Value.

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Why the 21st Century Will Belong to Family Businesses

Harvard Business Review

This was the era of the company man, where employees exchanged long-term loyalty for a livable wage and a pension plan. And given the pace of growth, capital was always in demand. Outside funds bring with them a pressure to achieve short-term results that trade-off with value creation.

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The Real Reasons Companies Are So Focused on the Short Term

Harvard Business Review

Some argue that profits are stagnant because of short-termism—that decades of focusing on current profits over long-run innovativeness has resulted, now, in companies that are hollowed out. Most attempts to combat short-termism are flawed because they focus on changing CEO behavior through some combination of pleading and incentives.

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Why Data Breaches Don’t Hurt Stock Prices

Harvard Business Review

As every company is becoming a digital company, every leader (who is also becoming a digital leader) is realizing that breaches may negatively affect profitability and the company’s long-term ability to do business. Data Security & privacy'

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

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. We’ve seen companies such as Unilever, AT&T, and Amazon succeed by sticking resolutely to a long-term view.