Corporate Short-Termism: A Review and Research Agenda (Wiersema et al., 2025)

Welcome to "Revise and Resubmit", where we delve into groundbreaking research that shapes how we think about business, society, and everything in between. Today, we’re tackling a pressing issue that keeps CEOs awake at night and shareholders glued to quarterly reports: corporate short-termism. This phenomenon, where managers prioritize quick wins over long-term growth, is dissected in the paper "Corporate Short-Termism: A Review and Research Agenda" by Margarethe Wiersema, Haeyoung Koo, Weiru Chen, and Yu Zhang. Published in the prestigious Journal of Management, an FT50 journal, this study is a must-read for anyone who cares about the sustainability of modern business practices. Imagine a company slashing its R&D budget or delaying a vital investment—all to satisfy the insatiable appetite of capital markets for immediate returns. The authors not only explore what drives such decisions but also propose a fresh framework to understand the consequences of this short-term mindset. From the pressures of shareholders to the cultural and organizational dynamics within firms, this paper offers a comprehensive roadmap for future research on this vital issue. A big thank you to Margarethe Wiersema, Haeyoung Koo, Weiru Chen, Yu Zhang, and SAGE Publishing for this pivotal contribution to the field. Don’t forget to subscribe to "Revise and Resubmit" on Spotify, and check out our YouTube channel, "Weekend Researcher". You can also find us on Amazon Prime and Apple Podcasts. Here’s a thought to ponder: As businesses navigate an ever-changing world, is it possible to balance the demands of short-term performance with the pursuit of long-term sustainability? Or are we locked in a system where chasing quarterly gains will always win? Reference Wiersema, M., Koo, H., Chen, W., & Zhang, Y. (2025). Corporate Short-Termism: A Review and Research Agenda. Journal of Management, ahead-of-print. https://doi.org/10.1177/01492063241303392 Youtube Channel ⁠https://www.youtube.com/@weekendresearcher⁠ Support us on Patreon https://patreon.com/weekendresearcher