CEOs are increasingly frustrated by the short-term orientation of investors. They say markets underappreciate long-term investments and ignore issues like employee and customer welfare, while pressuring companies to make decisions that maximize short-term earnings and stock prices. CEOs are perhaps right that some investors are short-term oriented and, as a result, damage the long-term success of businesses. However, according to research by our organizations – KKS Advisors and The Generation Foundation – few CEOs are providing materially relevant information to investors that would encourage long-term oriented capital allocation.
If CEOs Care About the Long Term, Why Don’t They Talk About It?
Research shows it’s analysts, not executives, who are leading the way.
November 13, 2015