A panel discussion and Q&A with Professor John Kayby Prospect Team / November 27, 2013 / Leave a comment
From left to right: Sir George Cox, Henry Tapper, John Kay, Bronwen Maddox and Martin Gilbert
© Sophia Schorr-Kon
On 19th November Martin Gilbert, CEO of Aberdeen Asset Management, hosted an event on short termism in equity markets in association with Prospect. On the panel were Professor John Kay, Henry Tapper and Sir George Cox.The debate was chaired by Bronwen Maddox, Editor of Prospect.
Professor John Kay, the economist and Financial Times columnist, explained to a large audience at Aberdeen Asset Management’s London office, the reasoning behind his report into equity markets, which was published 18 months ago. The report, explained Kay, pointed out that public exchanges were a product of the 20th Century and were designed to suit the purposes of large manufacturing corporations such as rail companies. But 21st Century exchanges are composed of companies that are much less capital intensive. Companies now, especially technology companies such as Google, Facebook and Twitter, can become cash generative much faster. So when Facebook issued equities, and in doing so raised £16bn, it made clear afterwards that it had no idea what to do with the money.