Trade-off between Investor's Short- and Long-term Goals

Bistrova, Julia; Lace, Natalja
June 2012
Economics & Business;2012, Vol. 22, p23
Academic Journal
The latest studies and financial literature are analysed to determine the factors, which influence long-term shareholder value maximisation, which is ultimately the goal of the investor and the corporation itself. Content analysis has showed that the key to return sustainability is high quality of corporate governance, ethics and social responsibility, as well as plausible capital budgeting policy. Moreover, the road to long-term shareholder return sustainability is often "paved" by innovations. Based on the findings, the authors propose the model which helps to create an optimal portfolio with the aim to achieve the highest shareholder value in the long term by managing the risks associated with the above-mentioned factors.


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