Are U.S. Companies Too Short-Term Oriented? Some Thoughts
U.S. companies are often criticized for being overly short-term oriented. This paper documents that those criticisms have a long history, going back at least thirty-five years. The paper then considers the implications of sustained short-termism for corporate profits, venture capital investments and returns, private equity investments and returns, and corporate valuations. The paper finds little long-term evidence that is consistent with the predictions of the short-term critics.
Published Versions
Steven N. Kaplan, 2018. "Are U.S. Companies Too Short‐Term Oriented? Some Thoughts," Journal of Applied Corporate Finance, Morgan Stanley, vol. 30(4), pages 8-18, December. citation courtesy of
Steven N. Kaplan, 2018. "Are US Companies Too Short-Term Oriented? Some Thoughts," Innovation Policy and the Economy, University of Chicago Press, vol. 18(1), pages 107-124. citation courtesy of