Short-termism not long for Wall Street?

Kimberly Adams Jun 7, 2018
HTML EMBED:
COPY

Short-termism not long for Wall Street?

Kimberly Adams Jun 7, 2018
HTML EMBED:
COPY

Only about a quarter of public companies continue to include earnings predictions in their quarterly reports. Guidance is not required by law, and experts say it has become the tail that wags the dog. Once companies forecast earnings for the coming quarter, they manage their businesses to meet — or beat — those forecasts, which makes it hard to plan and invest based on long-term goals.

Click the audio player above to hear the full story. 

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.