Showing posts with label Short-termism. Show all posts
Showing posts with label Short-termism. Show all posts

Saturday, May 16, 2026

Short-termism is Sticky - Moving from Principal-Agent to Principal-Principal Conflicts

Now this is the other side of the corporate short-termism debate that has gained little importance. If QoQ disclosures to shareholders is forcing companies to think short-term, moving to a less frequent disclosure can create information asymmetries that can harm retail investors / minority shareholders who rely only on public disclosures and media with wide reach. The measure intended to alleviate short-termism driven by principal-agent dynamics is probably going to amplify short-termism driven by principal-principal conflicts!

I recommend reading the full letter below from wallstreetbets community to SEC!



Originally posted on LinkedIn on 16 May 2026

Short-termism is Sticky - Moving from Principal-Agent to Principal-Principal Conflicts

Now this is the other side of the corporate short-termism debate that has gained little importance. If QoQ disclosures to shareholders is fo...