Do Long-Term Investors Improve Corporate Decision Making ?

@inproceedings{Harford2015DoLI,
  title={Do Long-Term Investors Improve Corporate Decision Making ?},
  author={Jarrad Harford and Ambrus Kecsk{\'e}s and Sattar Mansi},
  year={2015}
}
We study the effect of investor horizons on a comprehensive set of corporate decisions. Longterm investors have the means and motive to monitor corporate managers, which generates corporate decisions that are consistent with shareholder value maximization. We find that longterm investors strengthen corporate governance and restrain managerial misbehaviors… CONTINUE READING