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Short-Termism on the Capital Market – Motives and Implications
Abstract
The main goal of the article is to focus an attention on the activities leading to the excessive investors’ concentration on the short-term benefits and on the evaluation of such activities in the next step. Such practices are particularly visible in the case of public companies and investments on the capital market. The factors that contributed to short-termism are described on the base of the literature review. They are as follow: reduced trading times, increasing role of institutional investors and shortened CEOs tenure. A number of studies shows that should be a balance between short-, medium- and long-term goals.
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DOI: http://dx.doi.org/10.17951/h.2015.49.4.355
Date of publication: 2016-01-28 11:03:40
Date of submission: 2015-07-14 23:42:42
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