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Public companies tend to focus on making money instead of innovation? They become slaves of their quarter reports and lose the ability of investing in long ter
by leojg 9y ago
Public companies tend to focus on making money instead of innovation?
They become slaves of their quarter reports and lose the ability of investing in long term projects?
Maybe a bit exaggerated? :D
- dlp211 9y agoI think shareholder expectations determine what a company does. If the company is a growth company, shareholders will gladly allow the company to innovate, but if it's a blue chip, they will expect dividends.
- jimrandomh 9y agoRight, but there are important, large companies that are neither of these things. A privately-held company can act as a pseudo-nonprofit, if its management wants, investing in the benefit of humanity at the expense of both profit and growth. The possibility of shareholder lawsuits makes that much harder to do.