Short-Termism, Impatient Capital and Finance for Manufacturing Innovation in the UK

Alan Hughes

Working Papers from Centre for Business Research, University of Cambridge

Abstract: This paper analyses the links between financial market structures, governance systems and investment behaviour in the UK focusing in particular on investment in R&D. It assesses the extent to which business decision taking in the UK is as a consequence affected by 'short-termism'. Taken together, the qualitative and quantitative literature reviewed in this report provide substantial evidence for both absolute short-termism in UK financial markets and relatively higher short-termist attitudes compared to other countries. This would imply a bias against long-term innovation intensive investment in manufacturing in the UK liberal market economy.

Keywords: Short-termism; Innovation; R&D; Corporate Governance; Varieties of capitalism (search for similar items in EconPapers)
JEL-codes: G3 L5 O31 O32 P5 (search for similar items in EconPapers)
Date: 2014-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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