Are US Companies Too Short-Term Oriented? Some Thoughts
Published Date
Copyright 2018
ISBN 9780226575872
DOI 10.1086/694409

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US companies are often criticized for being overly short-term oriented. This paper documents that those criticisms have a long history, going back at least 35 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.
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Copy CitationSteven N. Kaplan, Innovation Policy and the Economy, Volume 18 (University of Chicago Press, 2017), chap. 5, https://www.nber.org/books-and-chapters/innovation-policy-and-economy-volume-18/are-us-companies-too-short-term-oriented-some-thoughts.