Short termism: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Add link.) |
(Improve linking.) |
||
| Line 8: | Line 8: | ||
* [[Financial reporting]] | * [[Financial reporting]] | ||
* [[Historical cost accounting]] | * [[Historical cost accounting]] | ||
* [[Liquidity]] | |||
* [[Listed company]] | * [[Listed company]] | ||
* [[Longer term]] | * [[Longer term]] | ||
| Line 17: | Line 18: | ||
* [[Taking private]] | * [[Taking private]] | ||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Latest revision as of 13:51, 26 September 2025
Short termism is an excessive focus on results in the current financial reporting period, to the detriment of longer term interests and necessary investment.
The perceived short termism of investors in listed companies is sometimes cited as a reason for taking companies private: the result is that private investors may be prepared to take a longer term view of their investments.