ABSTRACT

This chapter deals with the sources and regulation of financial markets’ short-termism. One of the major goals is to show how an integrated multidisciplinary framework might be useful to understand how inefficiencies arise in financial markets and how long-term investments, when they are desirable, may be promoted. This chapter is thus neither a literature review nor an original research report. Instead, it offers various research avenues that may fruitfully inform the debate on how to design efficient incentive schemes in the long-term asset management industry.