Why U.S. Managers Might Be More Short-run Oriented Than the Japanese

A decade ago, some business analysts began to accuse U.S. managers of concentrating too much on current profits and too little on enhancing their firms’ long-run prospects. The implication of this alleged corporate myopia is that American companies would gradually become less competitive and less profitable relative to their foreign counterparts (particularly Japanese firms), which are thought to be more long-run oriented.