“The only reasonable conclusion from reading [this book] it is that short-termism is like the proverbial emperor with no clothes. It may be emotionally satisfying, but there is very little, if any, empirical evidence to support its main theses.
It is, in other words, a theory in search of non-existing empirical support. It is more of a myth than a reality, and it should have no weight in policy decisions about the make-up of the modern corporation, its governance and its role in society, let alone in laws, regulations and court decisions impacting contests for corporate board seats and corporate control.”
[COMMENTARY]For many of us short-termism in the financial markets is one of the deadly sins of the modern era. It’s said to detract from long-term planning and action that would truly benefit business profits and society’s living standards. This article reviews a new book by Professor Mark J. Roe entitled “Missing the Target: Why Stock Market Short-Termism Is Not the Problem.” In the article, Charles Nathan reviews Professor Roe’s book in which the professor destroys our notions of short-termism!
A Deconstruction of the Short-Termism Thesis, a book review by Charles Nathan, April 15, 2022, Harvard Law School Forum on Corporate Governance, USA.