Harvard Business Review

JULY 1, 2016

The problem with the term “maximize shareholder value” is that it has been hijacked by those who incorrectly believe that the goal is to maximize short-term earnings to boost today’s stock price. Properly understood, maximizing shareholder value means allocating resources so as to maximize long-term cash flow.

Short-term 10

Short-term Long-term Objective Incentives 10

Harvard Business Review

NOVEMBER 1, 2011

Our big, profitable companies have the resources to do everything they might consider a priority in the long run — invest in R&D, pay shareholders well, build new businesses and hire people, create a more sustainable enterprise.whatever. want people to focus on cash flow, which is a much longer-term measure than short-term profit.".

GAAP 8

GAAP Short-term P&L EPS 8

Harvard Business Review

APRIL 3, 2015

GAAP and FASB standards require financial reporting of earnings, cash flow, and profitability – all measures that investors have traditionally examined. Wise, long term investors recognize that leadership affects firm performance. Investors have also worked to track and measure these intangibles, even if more subjective.

Marketing 8

Marketing Leadership Venture Capitalist GAAP 8