A new metric called the Corporate Horizon Index has been developed by one of the big three management consulting firms- McKinsey – to compare and contrast the performance of various companies under parameters such as market capitalization, job creation, investment, revenue and earnings. This index values long term-stability over the destabilizing effects of short-termism. Several findings have already appeared such as between a thirteen-year span since 2001, long-term focused companies have witnessed a forty-seven percent rise in earnings and thirty-six percent in average growth compared to their short-term-centric rivals. Over a similar period, the former companies also created a whopping twelve-thousand more jobs than the other group.

Source:https://www.mckinsey.com/global-themes/long-term-capitalism/where-companies-with-a-long-term-view-outperform-their-peers?cid=other-eml-ttn-mgi-mgi-oth-1712

Uploaded Date:06 February 2018