Is It Time to Get Rid of Earnings-per-Share (EPS)?

被引：15
|
作者：
Almeida, Heitor [1 ]
机构：
[1] Univ Illinois, Gies Sch Business, 515 East Gregory Dr,Room 4037, Champaign, IL 61820 USA
来源：
REVIEW OF CORPORATE FINANCE STUDIES | 2019年 / 8卷 / 01期
关键词：
MANAGEMENT; INVESTORS; FIRMS;
D O I：
10.1093/rcfs/cfy010
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This paper discusses recent empirical evidence showing that the presence of earnings-per-share (EPS) targets is associated with short-termist behavior. EPS targets affect stock repurchases, R&D investments, capital expenditures, employment, and the structure of M&A deals. The practice of chasing EPS with changes in real investments appears to lead to long-term underperformance and can significantly affect economic growth and welfare. This discussion suggests that analysts, investors, and companies should stop focusing on EPS as a measure of performance. I also discuss how to break the link between performance targets and short-termism.
引用
收藏
页码：174 / 206
页数：33
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