Final answer:
Executives may be incentivized to focus on short-term management due to certain performance metrics and influence over board selection, potentially overlooking long-term shareholder interests.
Step-by-step explanation:
Executives might be motivated to manage a company for the short term rather than the long term due to factors such as performance metrics, market pressures, and personal incentives tied to short-term results. In a well-functioning corporate governance structure, the board of directors ensures the company operates in the interests of the shareholders.
Improved accessibility to information regarding the company's operations makes it easier for these investors to provide financial capital, supporting short-term strategies if they appear profitable. Yet, few shareholders have the resources or inclination to challenge the board, allowing executives to push for strategies that might favor quick returns at the expense of long-term sustainability.