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What Are the Harms of Short-Termism?

  • Kim M. Willey
Chapter

Abstract

For short-termism to be a material problem necessitating regulatory correction there needs to be at least some demonstrable harm. This chapter discusses the difficulties around measuring the impacts of short-termism, and analyzes the research conducted demonstrating the harms of short-termism. This research identifies four key categories of harm: (1) reduced firm productivity, (2) reduced trust in the stock market, (3) societal costs, and (4) wealth transfer from future to current asset owners and concludes that the probable areas of harm are (2) reduced trust in the stock market and (4) the wealth transfer.

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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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