Faculty News | HBR Blogs | 01
Beware of Short-term Management, Not the Short-term Investor
by Ananth Raman
Much has been made in recent years about the pernicious influence of short-term investors on corporate performance. I believe these arguments often miss a nuance: It is not the short-term investor but short-term management that is the problem. The short-term investor does not reduce the firm's long-term competitiveness and value;short-term management does.