Is Stock-Market Short-Termism Really Behind Climate Change?
It has become uncontroversial to suggest that corporate executives are obsessed with immediate profits, often at the expense of their company's long-term value. But the claim lacks evidence, misdiagnoses the problem, and comes with high costs of its own.
CAMBRIDGE – Today’s equity-market volatility and declining stock indices could prompt worried policymakers on both sides of the Atlantic to turn their attention to corporate managers’ obsession with the share price of their firms.