Firms should resist short-termism, create long-term value

OVER the past several years, I have written to the CEOs of leading US companies urging resistance to the powerful forces of short-termism afflicting corporate behaviour. Reducing these pressures and working instead to invest in long-term growth remains an issue of paramount importance for BlackRock's clients, most of whom are saving for long-term goals, as well as for the entire global economy.

While I've heard strong support from corporate leaders for taking such a long-term view, many companies continue to engage in practices that may undermine their ability to invest for the future. Dividends p…