The short-term mentality that drives American businesses and investors has negative long-term implications for the US economy. CEOs, focused on meeting this-quarter’s goals, engage in shareholder friendly activities such as buying back shares and boosting dividends while neglecting long-term value creation and growth. This noteworthy study from governance experts William A. Galston and Elaine C. Kamarck puts a magnifying glass to the potentially disastrous consequences of America’s “corporate short-termism.” getAbstract recommends this eye-opening report to corporate decision makers, board directors and policy makers.
In this summary, you will learn
- How short-term incentives drive corporate behavior,
- What negative impacts that mind-set can have, and
- How changes in practices and regulations could encourage long-term value creation and help the economy.
About the Authors
William A. Galston and Elaine C. Kamarck work on the Brookings Institution’s Governance Studies Program.