%0 Journal Article
%T Under What Conditions Does Short-Termism Compromise Long-Term Performance in Publicly Traded Companies?
%A Holden Leder
%J Open Journal of Business and Management
%P 1584-1596
%@ 2329-3292
%D 2023
%I Scientific Research Publishing
%R 10.4236/ojbm.2023.114088
%X <span style=\"font-size:10.0pt;font-family:&quot;\">Today, much of literature on short-termism in public
companies focuses on the negative consequences of short-term actions and the
foregoing of long-</span><span style=\"font-size:10.0pt;font-family:&quot;\"> </span><span style=\"font-size:10.0pt;font-family:&quot;\">term value-added
opportunities. Short-term actions by company managers are often associated with
the emphasis on maximizing short-term earnings in the form of quarterly reports
to maximize short-term equity performance, even if the actions compromise the
long-term ability of the company to create value. Alternatively, the
introduction of private equity and the implementation of their short-term
strategies on their acquired companies often leave those companies with
structures that benefit them long after the private equity firm exits. I find
that the current view of the effects of short-termism must be expanded on to
include the possibility of an increase in the long-term performance of public
companies after private equity ownership and the implementation of short-term
private equity strategies. More broadly, I find that the current view of
short-termism is incorrect in only correlating short-term actions with
short-term performance.</span><span style=\"font-size:10.0pt;font-family:&quot;\"></span>
%K Short-Termism
%K Long-Termism
%K Agency
%K Structure
%K Private Equity
%K Performance
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=126327