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

Harvard Business Review

While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex. FCLT and McKinsey rely on readily available and machine-readable accounting data to measure myopia. But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic. Creative accounting measures. Strategy Accounting Digital Article