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The Role of Short‐Termism in Financial Market Crises
Authors:John Nesbitt
Abstract:The purpose of this paper is to examine the contribution short‐termist behaviours have had in various financial market crises. The early warning signs and drivers of short‐termism are investigated, as well as ways to mitigate short‐termist behaviour and consequences in the future. Short‐termism as defined for the purposes of this paper is the excessive focus on short‐term performance, earnings and other metrics at the expense of attention being given to the development of a long‐term strategy that promotes sustainable long‐term value creation.
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