A bull figure is pictured in front of the German share price index DAX board at the German stock exchange in Frankfurt (REUTERS/Lisi Niesner).
Paper | Corporate Purpose
Can Executive Compensation Reform Cure Short-Termism?
March 18, 2013, Andrew C.W. Lund and Gregg D. Polsky
Gregg D. Polsky and Andrew C.W. Lund analyze whether senior managers are too focused on short-term results at the expense of long-term interests. Polsky and Lund entertain the idea of combating short-termism through executive compensation reform yet they find that these reforms will likely be ineffective due to other pressures on managers to maintain current stock prices.