I’m conflicted on this one because companies should be transparent, but the current quarterly requirements drive incredibly short sighted decisions aimed exclusively at pumping up the share price every 3 months.
Publicly traded companies don’t plan more than like 3 years ahead because of this pressure.
Dodge v Ford, eBay v Newmark, probably lots of other court decisions, all make share price the only thing that matters to a Board of Directors. Nothing about the workers. Nothing about the community. Nothing about the nation…
Would this help? Not sure. But it would make the 3 month window less dominant.
I’d say there is a healthy debate to be had about this.
The thing that is actually concerning is that it came out of Trumps mouth out of the blue, so there is a non zero chance there is a reason beyond the pro and cons of this.
Listening to today’s episode of the Prof G podcast there is a new exchange trying to open that is lobbying for the same 6 month reporting structure. So it’s some sort of payoff in sure.
I’m conflicted on this one because companies should be transparent, but the current quarterly requirements drive incredibly short sighted decisions aimed exclusively at pumping up the share price every 3 months.
Publicly traded companies don’t plan more than like 3 years ahead because of this pressure.
Dodge v Ford, eBay v Newmark, probably lots of other court decisions, all make share price the only thing that matters to a Board of Directors. Nothing about the workers. Nothing about the community. Nothing about the nation…
Would this help? Not sure. But it would make the 3 month window less dominant.
I’d say there is a healthy debate to be had about this.
The thing that is actually concerning is that it came out of Trumps mouth out of the blue, so there is a non zero chance there is a reason beyond the pro and cons of this.
Listening to today’s episode of the Prof G podcast there is a new exchange trying to open that is lobbying for the same 6 month reporting structure. So it’s some sort of payoff in sure.
I’m going to go the opposite way and say that their books should be more open than they currently are.
Gonna go out on a limb and say capitalism won’t fix itself if it suddenly looked further ahead. Probably the opposite.