Business Services Industry

The Atlanta Journal and Constitution Business Press Column.

Knight Ridder/Tribune Business News, June, 2001

By Tom Walker, The Atlanta Journal and Constitution Knight Ridder/Tribune Business News

Jun. 19--QUARTERLY REPORTS SEEN AS COUNTERPRODUCTIVE: Public companies are being terrorized, according to the Harvard Business Review (June). The tyrant is the quarterly earnings report that "dominates and distorts the decisions of executives, analysts, investors and auditors."

"Even economists are unanimous in their view that these numbers say next to nothing about a company's prospects beyond the next quarter," writes Harris Collingwood, senior editor.

The process is called "meeting analysts expectations," and it has become "a game whose imperatives override even the imperative to deliver the highest possible return to shareholders."

The...

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