What is Stock Market Short-Termism?

29 Pages Posted: 23 Aug 2022 Last revised: 11 Sep 2022

Date Written: August 16, 2022

Abstract

What precisely is stock market short-termism? For an issue that pervades corporate governance thinking, rhetoric, and policymaking, one would think that we know well what it is. But much that’s called stock market short-termism is not properly categorized as such. This distinction—between true stock-market short-termism and false short-termism—is the focus of this article.

Keywords: Short-termism, quarterly capitalism, hedge funds, shareholder activism, R&D, capex, investment, buybacks

JEL Classification: D72, E71, G18, G34, G38, G41, K22, L21

Suggested Citation

Roe, Mark J., What is Stock Market Short-Termism? (August 16, 2022). European Corporate Governance Institute - Law Working Paper No. 658/2022, Available at SSRN: https://ssrn.com/abstract=4194910 or http://dx.doi.org/10.2139/ssrn.4194910

Mark J. Roe (Contact Author)

Harvard Law School ( email )

Griswold 502
Cambridge, MA 02138
United States
617-495-8099 (Phone)
617-495-4299 (Fax)

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