Article | Harvard Business Review | June 2012

Short Termism: Don't Blame the Investors

by Francois Brochet, George Serafeim and Maria Loumioti


The article presents research on executives and corporation investor relations. A study is conducted of the language used by executives in conference calls discussing earnings with investors and financial analysts. A correlation was found between the use of language indicating a short-term focus by those executives and both their company's financial management practices and the company's stockholders, who were more likely to hold stock for short periods of time compared to other stocks.

Keywords: Financial Management; Business Earnings; Managerial Roles; Investment; Agency Theory; Communication Strategy; Business and Shareholder Relations;


Brochet, Francois, George Serafeim, and Maria Loumioti. "Short Termism: Don't Blame the Investors." Harvard Business Review 90, no. 6 (June 2012).