Limitations of Modern International Finance and Accounting Practices through Analysis of Short-Termism
Abstract
This paper is devoted to analysis of short-termism in its influence on modern international finance and accounting practices. One might say that short-termism is a problem of a particular company and the market should correct this inefficiency in a usual way. However, many analysts and scientists suggest that it is problem of the society as well. Short-termism is not a recent issue in the world of finance and accounting, however, there are not many extensive researches available. The topic became more popular after 2008-2009 when financial crisis hit the financial world and made professionals analyze what went wrong, at what stage and why. The overview of main views on the issue is provided in the article. Main causes of focus on short-term outlook are reasoned in this work. Formal foundation of short-termism and main disadvantages of it is disclosed. In order to mitigate negative impact of short-termism it is recommended to implement three-part model.
About the Authors
S. E. Erofeeva
ACCA
Russian Federation
Russian Federation
I. O. Yurasova
Financial University
Russian Federation
Russian Federation
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Review
For citations:
Erofeeva S.E., Yurasova I.O. Limitations of Modern International Finance and Accounting Practices through Analysis of Short-Termism. Review of Business and Economics Studies. 2017;5(4):54-61. (In Russ.)
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