New Models of ‘Intelligent Investing’ for the Post-Crisis Economy

Abstract

Is coronavirus accelerating the future? Will the crisis provide a tipping point that encourages corporations to promote socially desirable values? Will there be a wider recognition that a sole focus on profits and investors hurts both companies and society? Or, will we simply return to business-as-usual once the memory of the crisis fades?

The financially driven corporate world has been losing its appeal over recent years and an anti-corporate sentiment has become more prevalent. There is a greater demand for better standards of corporate behavior and new metrics for judging corporate success. What is ironic is that corporations that embrace a more stakeholder-oriented purpose already outperform their peers when it comes to stock market returns. When thinking about rebuilding the economy post-crisis, this paper argues that investors need to be encouraged to take ‘intelligent risks’ that focus on stakeholder-oriented listed and non-listed companies.

Keywords: blockchain, coronavirus, corporate governance, corporations, entrepreneurship, high-frequency trading, innovation, investors, liquidity, private companies, smart contracts, stock markets

JEL Classification: D21, D26, G32, G34, G38, K22, L21, O16