Short-Termism Transmission Mechanisms

  • Kim M. Willey


For the short-termism in Chapter 5 to be an issue, it must somehow result in short-termism actions of listed companies. This chapter explores the argument the short-term interests of asset owners and intermediaries are transmitted into listed companies mainly through shareholder activism and executive compensation and the resulting actual or perceived impact of such practices on share prices of listed companies. Consequently, the upstream short-term interests impact the actions of listed companies by causing company managers to forgo longer-term value maximization in favour shorter-term returns.


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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Kim M. Willey
    • 1
  1. 1.Faculty of LawUniversity of VictoriaVictoriaCanada

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