Yesterday we posted a piece about how corporate managers should focus on “stakeholders, not just shareholders“. The piece we were linking to was in large part a critique of “quarterly capitalism,” i.e., the form of capitalism that focuses on short-term (e.g., quarterly) returns to shareholders. The brief blog entry linked below (by a leading economist) casts doubt on the idea that “quarterly capitalism” is a bad thing, citing (and quoting) some scholarly work on the topic. >>>
LINK: How bad a problem is “quarterly capitalism”? (by Tyler Cowen at Marginal Revolution)
There is more evidence to consider, but I will start by introducing the idea that the standard anti-publicly traded company tropes are not self-evidently true, or at the very least we do not know them to be true….
What do you think?