Short-Termism Report

Short-Termism Report

Bartosz Olesiński, Paweł Opala, Marek Rozkrut, Andrzej Torój. 2014. (View Paper → )

The right balance between a short- and long-term perspective is crucial for the sustainability of a successful business. However, there is a lot of evidence, not least the recent financial crisis, to show that long-term objectives have often been neglected because of too much concentration on short-term goals.

Short-termism decreases the competitiveness of companies, increases systemic risks and reduces the long-term potential. If you’re too focused on earnings management you’re not building the long-term value of the company. If you’re forcing results in the short-term, everything is going to go in the wrong direction in the long term.