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Is there research showing that public companies focusing on long term performance perform better than companies focusing on short term performance? It is often
by teruakohatu 5y ago
Is there research showing that public companies focusing on long term performance perform better than companies focusing on short term performance?
It is often taken as a given that this is true, despite the many very long term successful public companies.
- eries 5y agoYes there is much research in this area. Personally, I first got interested in this as a philosophical matter from reading about Toyota and its history (which has been extensively researched) I think it's interesting that you use the word "despite" here, since of course it's those very companies that provide the data for this area of research. I don't have time to pull links to papers right now, but there are some referenced in our (rather old now) whitepaper: https://longtermstockexchange.com/static/principals_for_lt_success_white_paper-52e153e1e0be49bd178f74475f274ef0.pdf https://longtermstockexchange.com/static/principals_for_lt_s... as well as our original application to the SEC: https://www.sec.gov/rules/sro/ltse/2019/34-86327.pdf https://www.sec.gov/rules/sro/ltse/2019/34-86327.pdf Some of my favorite research shows what happens to pairwise-matched companies where one went public and one stayed private. The effects are totally predictable.
- eloff 5y ago> Some of my favorite research shows what happens to pairwise-matched companies where one went public and one stayed private. The effects are totally predictable. That sounds like an interesting read. How can I find it?
- eries 5y agoI don't have the citation handy, but I'll keep an eye out next time I go through my archives and see if I can dig up a link. It's a fascinating branch of research, imho