The Economic Role of Finance: A Contribution to the the Kay Review of UK Equity Markets and Long-Term Decision Making

18 Pages Posted: 16 Jun 2012

See all articles by Cynthia A. Williams

Cynthia A. Williams

York University - Osgoode Hall Law School

Frank Jan de Graaf

Amsterdam University of Applied Sciences; University of Amsterdam - Department of Business Studies (BS)

Keith L. Johnson

affiliation not provided to SSRN

Date Written: November 28, 2011

Abstract

This contribution is written by a number of participants and directors of the Network for Sustainable Financial Markets (NSFM), an international, non-partisan, non-profit organization comprised of financial market professionals and academics. We strongly welcome the Kay Review, in which the mechanisms of corporate control and accountability provided by UK equity markets are examined for their effect on the long term competitive performance of UK businesses. We believe it could have a significant positive impact in the UK but also important knock-on international effects, especially with regard to countries following the Anglo-Saxon model.

In light of the financial crisis and continuing instabilities in developed market economies, we expect normative debates about how to create healthy economies to become more prominent. The perspective we bring is a sample of perspectives from NSFM. Acting outside of organisational affiliations and thus with reduced agency interests, we believe informed practitioners and commentators are well suited to identify current systemic problems and help to develop communities of practice within financial institutions to address those problems. It is in that spirit that we provide the following views, culled from the work and insights of many of our colleagues in NSFM.

Keywords: Corporate Governance, Kay review, NSFM, Long term investing, equity markets

JEL Classification: G30

Suggested Citation

Williams, Cynthia A. and de Graaf, Frank Jan and Johnson, Keith L., The Economic Role of Finance: A Contribution to the the Kay Review of UK Equity Markets and Long-Term Decision Making (November 28, 2011). Available at SSRN: https://ssrn.com/abstract=2084722 or http://dx.doi.org/10.2139/ssrn.2084722

Cynthia A. Williams

York University - Osgoode Hall Law School ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada
416-736-5545 (Phone)

Frank Jan De Graaf (Contact Author)

Amsterdam University of Applied Sciences ( email )

Wenckebachweg 144-148
Amsterdam, 1000BA
Netherlands

University of Amsterdam - Department of Business Studies (BS) ( email )

University of Amsterdam Business School
Plantage Muidergracht 12
Amsterdam, 1018 TV
Netherlands

Keith L. Johnson

affiliation not provided to SSRN ( email )

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