Stock Market Short-Termism

1. Front Matter

   Pages i-xxi

   PDF

2. Introduction

   • Kim M. Willey

   Pages 1-20

3. Defining the Issues

   • Kim M. Willey

   Pages 21-44

4. Short-Termism, an Evolving Concern?

   • Kim M. Willey

   Pages 45-70

5. What Has Been Done to Correct Short-Termism?

   • Kim M. Willey

   Pages 71-127

6. Is There a Short-Termism Problem at All?

   • Kim M. Willey

   Pages 129-154

7. Short-Termism Transmission Mechanisms

   • Kim M. Willey

   Pages 155-193

8. What Are the Harms of Short-Termism?

   • Kim M. Willey

   Pages 195-222

9. Dual Pathway for Short-Termism Reform

   • Kim M. Willey

   Pages 223-264

10. Conclusion

    • Kim M. Willey

    Pages 265-268

11. Back Matter

    Pages 269-288

    PDF

Consideration of harmful short-termism in capital markets is prevalent amongst legal and business academics. It is also garnering increased attention in corporate board rooms and executive suites, and from the investing public. As a result, correcting perceived short-termism in capital markets has become a rationale for reform used by regulators across the globe. Despite the considerable attention given to this phenomenon, there has not yet been a comprehensive book analyzing the perceived short-termism problem, its sources and causes, and reform efforts undertaken to date. This book fills this gap by documenting the rise of the short-termism discussion, analyzing the significance of the problem, and considering the proposed legal remedies. Based on this analysis, a framework for effective short-termism reform is offered.

• Global Financial Crisis
• Short-term Financial Objectives
• Short-Termism
• Corporate Governance
• Corporate Boards
• Capital Market Regulation
• Equity Market
• Stock Market Investing
• Equity Security
• Financial Intermediation Chain

“With deep insight and reference to research on both sides, this book will be of great value to a wide range of interested parties, including asset managers, institutional investors, corporate directors and executives, market analysts, investment advisors, investment bankers, legal counsel, accountants and academics.” (Martin Lipton, Founding Partner of Wachtell, Lipton, Rosen & Katz)

“In this highly impressive work, Willey provides one of the most comprehensive and sophisticated analyses of stock market short-termism ever undertaken, spanning numerous jurisdictions and disciplinary fields. Its clear articulation of the concepts and terminology involved makes it readily accessible to subject-matter novices, while its deep theoretical insights and practical reform proposals make it an equally valuable resource for existing experts and policymakers. In many respects it marks itself out as being THE definitive academic exposition of the short-termism phenomenon.” (Marc Moore, Faculty of Law, University of Cambridge, UK)

“Kim Willey’s important new book is a tour de force of scholarship. It offers a comprehensive discussion, analyzing skillfully and with impressive depth the issue of short-termism in listed companies and suggesting ways forward. Scholars and policymakers in this area will undoubtedly greatly benefit from this text.” (Martin Petrin, Faculty of Laws, University College London, UK)

“Corporate short-termism has been identified as a critical problem seemingly necessitating a robust regulatory response. With investors trading frantically on the basis of the latest earnings data, public company executives reputedly struggle to implement a long-term vision. Pernicious economic consequences ostensibly follow. How have lawmakers responded to this challenge?  How should they respond? Kim Willey, in her timely book, examines these pivotal questions. She provides judicious thought-provoking answers by combining a mastery of the extensive short-termism literature with her own exhaustive analysis of regulatory trends. This book is a must-read for academics, policymakers, executives and investors.” (Brian Cheffins, Faculty of Law, University of Cambridge, UK)

“Kim Willey has picked up one of the few corporate controversies that engages the public and politicians, not just corporate lawyers and corporate directors:  is stock-market-driven short-termism damaging firms and the economy in a serious way?  Ms. Willey concludes that it is, but that finding cures that will work is not as easy as the general thinking has it.” (Mark Roe, Harvard Law School)

• Faculty of Law, University of Victoria, Victoria, Canada

  Kim M. Willey

Kim M. Willey is a corporate mergers and acquisitions lawyer with 15+ years of experience advising boards of directors and senior executives of listed companies, including companies listed on the New York Stock Exchange, the London Stock Exchange, and the Toronto Stock Exchange. She currently advises as a corporate legal consultant, and teaches Business Associations at the Faculty of Law, University of Victoria, Canada.

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