Long-Term Investing: What Determines Investment Horizon?

Geoff Warren
2014 Social Science Research Network  
Synopsis The literature on investment horizon is reviewed in order to enhance the understanding of potential influences on long-term investing by institutional investors. Investment horizon reflects an interconnected web of influences related to an investor's circumstances, the design of the investing environment, and the choices that are made by key decision makers. Twelve such influences are identified and discussed. A characterization of investment horizon is offered based around two
more » ... rs: discretion over trading and how investment decisions are made, specifically the extent to which they are based on expected near-term price changes versus drivers of long-term value and returns. An overview of the debate over short-term versus long-term investing is also presented.
doi:10.2139/ssrn.2513088 fatcat:4otrt7jdrnddvchpkkqc7c2fvu