Short termism

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.

See also

• Behavioural skills
• Financial reporting
• Historical cost accounting
• Liquidity
• Listed company
• Longer term
• Private company
• Privatisation
• Shareholder value
• Short
• Short term
• Taking private