Missing the Target Why Stock-Market Short-Termism Is Not the Problem
Synopsis
Why stock-market short-termism is not causing severe damage to the American economyAccording to many political leaders, pundits, and corporate lawmakers, stock-market-driven short-termism - when corporations prioritize immediate results in the next quarter over their longer-term interests - is harming the American economy. This view, popular in influential circles, sees short-termism as causing sharply declining research and development (R&D), too many stock buybacks, and severe environmental harm. But the data fits badly with this black-and-white representation of short-termism.
Mark J. Roe analyzes the best data on R&D, corporate borrowings and buybacks, and long-term investment trends to show that stock market short-termism is not at the root of these economic problems. The book shows that blaming short-termism overlooks the real causes of declining investment, R&D changes, and environmental deterioration. By pointing to other sources of tension like accelerating technological change, rising political uncertainty, and repeated economic disruptions, Missing the Target argues for a more nuanced understanding of the challenges to the American economy. Roe disproves many of the core claims against short termism. R&D spending, for example, is rising faster than the economy is growing. It's government R&D support that's been falling. Reversing that decline is the best first target for bettering American R&D.
Missing the Target deepens the discussion of the American economy by analyzing the factors that contribute to current trends and by making a bold but straightforward claim: stock market short-termism is not the problem.
Book details
- Author:
- Mark J. Roe
- ISBN:
- 9780197625637
- Related ISBNs:
- 9780197625620, 9780197625644
- Publisher:
- Oxford University Press
- Pages:
- N/A
- Reading age:
- Not specified
- Includes images:
- No
- Date of addition:
- 2022-12-20
- Usage restrictions:
- Copyright
- Copyright date:
- 2021
- Copyright by:
- N/A
- Adult content:
- No
- Language:
- English
- Categories:
- Business and Finance, Law, Legal Issues and Ethics, Nonfiction