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

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

Mark Fenwick, Erik Vermeulen

Series number :

Serial Number: 
534/2020

Date posted :

August 14 2020

Last revised :

August 14 2020
SSRN Share

Keywords

  • blockchain • 
  • Coronavirus • 
  • Corporate governance • 
  • Corporations • 
  • Entrepreneurship • 
  • high-frequency trading • 
  • innovation • 
  • investors • 
  • liquidity • 
  • Private companies • 
  • smart contracts • 
  • stock markets

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.

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Authors

Real name:
Mark Fenwick