Regulatory Disclosures
Short-Termism
Short-termism refers to the excessive focus of some corporate leaders, investors, and analysts on short-term earnings guidance, coupled with a lack of attention to the strategy, fundamentals, and conventional approaches to long-term value creation. The combination of these elements can upset the balance in value for market participants, undermine the market’s credibility, and discourage long-term value creation and investment.
We feel that disproportionate emphasis on meeting short-term expectations of varying constituencies too often hinders corporate managers and all types of investors from focusing on long-term value creation. Solutions to the many causes of this short-term fixation will require stakeholders from many different disciplines to change their perspectives and methods for doing business.