The WSJ Got Quarterly Reporting Wrong: A Corporate Executive's Response
10 hours ago
- #corporate strategy
- #quarterly reporting
- #innovation
- James Mackintosh's defense of quarterly reporting in the WSJ is critiqued for ignoring real corporate behavior.
- Quarterly reporting creates perverse incentives, undermining long-term innovation, as seen in HP's R&D delays.
- Dell's privatization and subsequent R&D increase from $1.1B to $4.4B highlights the negative impact of quarterly pressure.
- Mackintosh's UK comparison is flawed as it doesn't account for ingrained short-term corporate conditioning.
- Big Tech's ability to invest long-term is an exception due to massive profit margins, not a rule for all industries.
- Reforms suggested include eliminating forward-looking earnings guidance and creating accounting treatments for innovation investments.
- The debate is framed as critical for America's economic future, competing with nations like China that plan long-term.