What is Stock Market Short-Termism?

What is Stock Market Short-Termism?

Mark Roe

Series number :

Serial Number: 
658/2022

Date posted :

September 09 2022

Last revised :

September 09 2022
SSRN Share

Keywords

  • short-termism • 
  • quarterly capitalism • 
  • Hedge Funds • 
  • shareholder activism • 
  • R&D • 
  • CAPEX • 
  • investment • 
  • buybacks

What precisely is stock market short-termism? For an issue that pervades corporate governance thinking, rhetoric, and policymaking, one would think that we know well what it is. But much that’s called stock market short-termism is not properly categorized as such. This distinction—between true stock-market short-termism and false short-termism—is the focus of this article.

What precisely is stock market short-termism? For an issue that pervades corporate governance thinking, rhetoric, and policymaking, one would think that we know well what it is. But much that’s called stock market short-termism is not properly categorized as such. This distinction—between true stock-market short-termism and false short-termism—is the focus of this article.

View full abstract

Authors