The McKinsey Global Institute issued an interesting discussion paper.
Companies with a long-term view outperform their peers on a range of key economic and financial metrics.
Their analysis used a data set of 615 large and mid-cap US publicly listed companies from 2001 to 2015.
It is based on patterns of investment, growth, earnings quality, and earnings management.
This enabled them to separate companies that take a long-term view from others and compare their relative performance, after controlling for industry characteristics and company size.
It would seem that companies would highly benefit from long-term independent financial advice.
In summary, companies with a long-term view:
- Exhibit stronger fundamentals
- Deliver superior financial performance
- Continue to invest in difficult times
- Add more to economic output and growth
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Source: McKinsey Global Institute