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Short-termism not long for Wall Street?

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 […]

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.

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