Thursday 18 April 2013

totally agree but need a new "re-evolved" capital market structure to support his proposal!?? Clayton Christensen on "Religion and Capitalism"


Must watch thought provoking video /insights from Prof Clayton

Totally agree with him that we need ways of fixing (paraphrasing):

1) instilling value & honesty (voluntarily and instinctively practiced by the business leaders)
2) solving "principal agent theory" (not only maximising shareholder value, as 95% of market is executed by speculators) pls refer to video!

Challenge on our hand is this:

we need a new ecosystem that promote the above (as the whole value chain is now speculative)..

Surely, our challenge is that our world need to reinvent and/or augment the value chain to "de-volute" or "re-evolve" a viable alternative capital market: it maybe difficult but it will need to incentivise management/boards to focus on long term viability of companies & reward them accordingly (some might argue the bulk of the management incentive delayed by 3-6years just as Prof. Clayton mentioned shareholders held shares for 6years in 1960s)!??

Make sense!??


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