Bozidar Bogosavljev
- Sep 27, 2019
Business Decision-Making and Institutional Investors: Short-Term and Long-Term Considerations
Short-termism – the focus on creating visible financial results within a fairly short time-period, typically 12 to 24 months – has become a driving force for many public companies. Although short-termism can prove financially lucrative for skilled day traders, it can also lead to careless decision-making which contributes to financial crises. A study by McKinsey, for example, found that 86% of C-suite executives think a greater long-term focus would reduce reckless risk-takin