Conclusion

This chapter summarizes the main arguments of the book, highlighting in particular the importance of the investment chain to an understanding of multiple outcomes in financial markets and of where influence lies within those markets. It joins with previous chapters in emphasizing that much more than money flows through the investment chain, and identifies two main issues with the operation of the investment chain: first, how the views of asset holders are reflected in the final choices of investment and in any engagement with investee companies; second, the unintended consequences of attempts to solve the principal–agent problem. A range of possible solutions to problems in the operations of the investment chain are assessed, including increased disclosure, shortening the investment chain, and passive investment.