ABSTRACT
Where a major concern in business decisions is the effect on the price of a firm's stock, that in itself shortens the time horizon in the firm's decisions. This raises a real issue if the length of the time horizon is shortened to the point where it produces economic results for the country that are judged to be unfortunate. It is already clear that the firm should be more interested for its own sake in its longer-run profitability than in the immediate impact of any decision on its immediate stock price.
