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Is There a Short-Termism Problem at All?

  • Kim M. Willey
Chapter

Abstract

This chapter delves into the financial and legal discussion around whether short-termism is a problem, and if so, what is causing it. This chapter assesses the strength of this evidence presented and accepts that there is a valid basis for concern. This chapter then considers how short-termism may be evident in share pricing, as share prices are an important communication mechanism between listed companies and the market. The conclusion is reached that there is apparent excessive discounting of future returns by asset owners and intermediaries, and the resulting impact on share prices is known to company managers and, accordingly, there is a strong incentive to prioritize short-term financial results of listed companies.

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Kim M. Willey
    • 1
  1. 1.Faculty of LawUniversity of VictoriaVictoriaCanada

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