Ten minute read: investment, short-termism, and declining belief in business

Perhaps one trend above all has dominated investor behaviour over the last a couple of decades: the rise and rise of short-termism. Structural changes and incentives have contributed to the average length of shareholding falling from six years in the 1950s to around six months today – with far-reaching implications including a widespread death of belief in business.  

 

More recently however, new rules and trends are compelling investors to take more responsibility as owners. How companies report could – and should - play a key role in contributing to a resurgence in vital long-termism, boosting engagement and instilling trust. 

 

This ten minute read explores:

 

• The trends behind the rise of short-termism in investor behaviour
• What this has meant for corporate behaviour – and declining belief in business
• The role of the annual report in improving engagement and driving long-termism
• The importance of specific disclosures in your next report

 

Have a read here.