Are U.S. Companies Too Short-Term Oriented? Some Thoughts

Steven Kaplan ()

No 23464, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: U.S. companies are often criticized for being overly short-term oriented. This paper documents that those criticisms have a long history, going back at least thirty-five years. The paper then considers the implications of sustained short-termism for corporate profits, venture capital investments and returns, private equity investments and returns, and corporate valuations. The paper finds little long-term evidence that is consistent with the predictions of the short-term critics.

JEL-codes: G3 L25 (search for similar items in EconPapers)
Date: 2017-06
New Economics Papers: this item is included in nep-cfn and nep-his
Note: CF PR
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Citations: View citations in EconPapers (1)

Published as Steven N. Kaplan, 2018. "Are U.S. Companies Too Short‐Term Oriented? Some Thoughts," Journal of Applied Corporate Finance, Morgan Stanley, vol. 30(4), pages 8-18, December.
Published as Steven N. Kaplan, 2018. "Are US Companies Too Short-Term Oriented? Some Thoughts," Innovation Policy and the Economy, University of Chicago Press, vol. 18(1), pages 107-124.

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Journal Article: Are U.S. Companies Too Short‐Term Oriented? Some Thoughts (2018)
Chapter: Are US Companies Too Short-Term Oriented? Some Thoughts (2017)
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