Respuesta :
A market under corporate control is an external governance mechanism that makes a poorly run firm susceptible to acquisition by outside investors.
According to governance experts, a propensity for short-termism is one of the most important problems in a market-based corporate governance structure. Targets for quarterly earnings established by sell-side analysts on Wall Street are handled by public companies. Companies can use a variety of accounting techniques to routinely meet or exceed Wall Street estimates, which will increase the value of their shares.
A quarterly earnings shortfall, however, might result in a dramatic drop in the stock price and send the management of the company looking for a quick fix. Governance specialists advise doing away with profit forecasts as a method to encourage a long-term perspective on a company's objectives and offer businesses more time to achieve them.
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