short-termism


short-termism
Any policy that aims to maximize current profits rather than long-term development and wealth. For example, cutting back on research and development reduces immediate costs but may lead to products becoming obsolescent in the future. A company may well experience problems of this kind if managers' salaries or bonuses are linked to short-term results. Likewise the share price for a company may become volatile if projects vary from year to year. Institutional and individual shareholders often overreact to a company's short-term results and policies, causing the company to lose the longer-term focus that is ultimately in the interests of all stakeholders

Accounting dictionary. 2014.

Look at other dictionaries:

  • short-termism — short term ˈshort term adjective 1. continuing for only a short time, or concerned only with the period of time that is not very far into the future: • Most of the staff are on short term contracts. • We will continue to manufacture products to… …   Financial and business terms

  • short-termism — n [U] a way of planning or thinking that is concerned only with what gives you advantages now, rather than what might happen in the future ▪ plans to combat short termism among investors in British industry …   Dictionary of contemporary English

  • short-termism — noun (U) a way of planning or thinking that is concerned only with what gives you advantage now, rather than what might happen in the future: short termism in the banking world short termist adjective …   Longman dictionary of contemporary English

  • short-termism — N UNCOUNT (disapproval) If you accuse people of short termism, you mean that they make decisions that produce benefits now or soon, rather than making better decisions that will produce benefits in the future …   English dictionary

  • short-termism — short termˈism noun (a tendency towards) the adopting of only short term views, solutions to problems, etc • • • Main Entry: ↑short …   Useful english dictionary

  • short-termism — An attitude that places *short term over long term gains. The management of a corporation may be tempted to enhance *short term *earnings to impress investors (and to boost the managers’ *remuneration), yet their decisions could cause *long term… …   Auditor's dictionary

  • short-termism — Any policy that aims to maximize current profits rather than long term development and wealth. For example, cutting back on research and development reduces immediate costs but may lead to products becoming obsolescent in the future. A company… …   Big dictionary of business and management

  • short-termism — UK [ˌʃɔː(r)t ˈtɜː(r)ˌmɪz(ə)m] / US [ˌʃɔrt ˈtɜrˌmɪzəm] noun [uncountable] British a tendency to act in a way that produces short term benefits, without considering the future effects …   English dictionary

  • short-termism — /ʃɔ:t tɜ:mɪz(ə)m/ noun the fact of taking a short term view of the market, i.e. not planning for a long term investment …   Dictionary of banking and finance

  • short-termism — noun The concentration on obtaining immediate profit at the expense of long term security …   Wiktionary