A focus on quarterly earnings and short-term stock price performance distracts an organization from identifying the strategies that would keep the firm relevant, which is why financially successful companies can still lose their market.
Source quote, verbatim
can easily distract an organization from the important business task of identifying strategies that can help a firm remain relevant in the future.
From
Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, The ‘Unmediated’ and ‘Tech-Driven’ Corporate Governance of Today's Winning Companies (2017), II. Common Characteristics of Disrupted Companies, p. 6 https://ssrn.com/abstract=2922176 · source PDF
Cite as
Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, The ‘Unmediated’ and ‘Tech-Driven’ Corporate Governance of Today's Winning Companies (2017). SSRN: https://ssrn.com/abstract=2922176
Holds when
listed companies are particularly prone to overweighting financial metrics
restated_bykaal:claim:3411897-013 Less successful companies share a myopic short term focus on shareholder value maximization, which produces an...
restated_bykaal:claim:3808859-003 Firms that fare worst under disruptive innovation share a myopic short-term focus on shareholder value maximiz...
supportskaal:claim:2097160-025 Replacing stock options with contingent convertible bonds both lowers total executive compensation and disince...
supported_bykaal:claim:3411897-014 Microsoft under Steve Ballmer missed the shift to networked technologies and mobile consumption because it foc...
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