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

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  • Alan Hughes

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.

Suggested Citation

  • Alan Hughes, 2014. "Short-Termism, Impatient Capital and Finance for Manufacturing Innovation in the UK," Working Papers wp457, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp457
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    Cited by:

    1. Jean Luc Gaffard, 2018. "Les réformes structurelles : philosophie sociale et choix politique," Documents de Travail de l'OFCE 2018-15, Observatoire Francais des Conjonctures Economiques (OFCE).
    2. Richard Slack & Ioannis Tsalavoutas, 2018. "Integrated reporting decision usefulness: Mainstream equity market views," Accounting Forum, Taylor & Francis Journals, vol. 42(2), pages 184-198, June.
    3. Kao-Yi Shen, 2017. "Compromise between Short- and Long-Term Financial Sustainability: A Hybrid Model for Supporting R&D Decisions," Sustainability, MDPI, vol. 9(3), pages 1-17, March.
    4. repec:hal:spmain:info:hdl:2441/2h6ap2iheh9m7bv39v1gu7cfq1 is not listed on IDEAS
    5. repec:spo:wpmain:info:hdl:2441/2h6ap2iheh9m7bv39v1gu7cfq1 is not listed on IDEAS

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    More about this item

    Keywords

    Short-termism; Innovation; R&D; Corporate Governance; Varieties of capitalism;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems

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