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The Origins and Costs of Short-Term Management
Paper Series on Restoring the Primacy of the Real Economy, Allen White, editor (2009)
  • Kent Greenfield, Boston College Law School
Abstract

Why is a fixation on the short term a problem for American businesses? One might hasten to answer that management is compensated for short-term successes. Another answer might be that some investors—particularly professional investors—value only the short term and manipulate the market in a particular stock so they can profit on the movement. These answers undoubtedly are part of the answer. But a puzzle remains: why does the market not punish such short-termism? This essay will present a possible answer.

Publication Date
June, 2009
Citation Information
Kent Greenfield. "The Origins and Costs of Short-Term Management" Paper Series on Restoring the Primacy of the Real Economy, Allen White, editor (2009)
Available at: http://works.bepress.com/kent_greenfield/20/