Corporate short-termism is arguably one of the main causes of economic, social and environmental unsustainability. This paper studies the effectiveness of loyalty shares - shares granting extra dividends or voting rights to shareholders holding them for a specified period of time - in limiting short-termism. The results confirm that, after loyalty shares issuance, companies manage earnings to a lower extent. Interpretation of the evidence supports the main hypothesis that loyalty shares can serve as an antidote against short termism.
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Hinweis: Dieser Artikel kann nur an eine deutsche Lieferadresse ausgeliefert werden.