Overcoming the Barriers to Long-term Thinking in Financial Markets
This report examines the challenges of fostering long-term thinking in financial markets, highlighting the dominance of short-term strategies and the systemic risks they pose. It proposes practical solutions to shift focus towards sustainable, long-term value creation, emphasizing the need for changes in corporate communication, incentive structures, and government policies.
(Generated with the help of GPT-4)
| Quick Facts | |
|---|---|
| Report location: | source |
| Language: | English |
| Publisher: | |
| Authors: | Alice Chapple, Ruth Curran |
| Geographic focus: | Spain |
Methods
The research method involved a literature review, interviews with finance sector practitioners and experts in culture and behavior change, and a round-table meeting with senior representatives from companies and financial institutions. The aim was to identify barriers to long-term thinking and practical ways to overcome them, focusing on cultural or behavioral change and specific, constructive solutions.
(Generated with the help of GPT-4)
Key Insights
The research identifies systemic barriers to long-term thinking in financial markets and suggests interventions to promote sustainable investment strategies. It explores the influence of short-termism on corporate behavior, the role of fiduciary duty, and the impact of incentive structures. The report proposes practical solutions, including improved corporate reporting, redefined asset manager incentives, and transparent executive remuneration, to encourage a shift towards long-term value creation.
(Generated with the help of GPT-4)
Additional Viewpoints
Categories: English publication language | Spain geographic scope | corporate reporting | executive remuneration | fiduciary duty | financial | financial markets | future | futures | incentive structures | investor behavior | long-term value | policy interventions | short-termism | sustainable investment