Leaders Eat Last: Why Some Teams Pull Together and Others Don't

by Simon Sinek

In fact, the more financial analysts who cover a company, the less innovative the company. According to a 2013 study that appeared in the Journal of Financial Economics, companies covered by a larger number of analysts file fewer patents than companies covered by fewer analysts. And the patents those companies do generate tend to have lower impact. The evidence supports the idea that “analysts exert too much pressure on managers to meet short-term goals, impeding firms’ investment in long-term innovative projects.” Put simply, the more pressure the leaders of a public company feel to meet the expectations of an outside constituency, the more likely they are to reduce their capacity for better products and services.