OECD Corporate Governance Working Paper Series - paper ten: 'Making Stock Markets Work to Support Economic Growth'

The tenth paper in the OECD Corporate Governance Working Paper series has been published. Titled Making Stock Markets Work to Support Economic Growth, Implications for Governments, Regulators, Stock Exchanges, Corporate Issuers and their Investors, the paper considers the characteristics that make some markets more successful than others: see here. Although largely focusing on the USA, the paper has something to say about the UK: the authors welcome the Kay Review recommendations and Government response thereto but describe them as insufficient. They argue that greater attention should be given to what they believe is the root cause of short-termism: the enablement created by low-cost electronic trading, cross linkages of asset classes and markets, and the accompanying use of derivatives to displace fundamental investment.