Short-termism by company management can become a problem because if you manage only to the next couple of quarterly earnings results, the temptation is to use accounting shenanigans or short-term measures like share buybacks to boost the share price at the expense of long-term performance.
It's more than that. The first half of the period (1998-2008) was the good old fashioned days of higher interest rates and conventional monetary policy. the second half of the period (2008-2018) was the ra of QE. So what would be interesting to see is a split period analysis.
I'm not buying this at all. Investors in large public companies are so removed from management that they cannot affect management actions. Corp Raiders and CALPERS are possibly exceptions, but CALPERS is long term, and raiders generally have a different agenda.
It's more than that. The first half of the period (1998-2008) was the good old fashioned days of higher interest rates and conventional monetary policy. the second half of the period (2008-2018) was the ra of QE. So what would be interesting to see is a split period analysis.
Simple and clear as I like it.
I'm not buying this at all. Investors in large public companies are so removed from management that they cannot affect management actions. Corp Raiders and CALPERS are possibly exceptions, but CALPERS is long term, and raiders generally have a different agenda.
This is not correct. Short term investors have lots of interaction with c-suite executives at public companies. Many times per year