Assignment First


当高通货膨胀率与高名义利率相结合时,会导致不确定性的增加。因此,通货膨胀导致不确定性水平的增加。与1970年相比,1980年英国的通货膨胀率较低,但实际投资率却相当高(Cosh, 1987)。由于同样的原因,经济因素导致英国短期压力增加。这些公司很大程度上依赖于外部融资,他们需要申请比资本贴现率更高的贴现率。大多数英国公司在资金方面基本自给自足,而且他们提供较低的折扣率。

导致英国公司短期压力增加的另一个重要因素是世界全球化的加剧和其他一些国家的技术进步。这有助于投资者更容易地将资金从一家公司转移到另一家公司。除此之外,进入不同的市场也变得更加容易。因此,他们可以很容易地将资金转移到其他国家的市场。在不同国家越来越多的市场的增长的帮助下,投资者更容易根据自己的风险状况进行投资,也更容易决定他们对回报的偏好。由于近年来新技术的迅速发展,信息在很短的时间内传遍了全世界。这可能会导致市场形势的立即变化。由于同样的原因,投资者在英国有大量的投资和追求短期利润的可能性(Doyle et al, 1992)。这也导致了在现代社会中获得即时回报的趋势的加强。由于信息从一个地方到另一个地方的翻译,已经有大量的超载信息,这有助于投资者以更快的速度处理数据。因此,在资金的帮助下,翻译可以在大量的来源。同样的一个例子是,在英国公开上市的股票从1960年的46%增长到2010年的89%。

因此,技术进步可以导致定期跟踪公司的业绩,这有助于他们越来越关注短期回报。这往往导致越来越多的压力应用于短期内的英国公司。客户一般不喜欢长线投资,也不接受等待更长的时间。这导致短期压力的增加。为了在短时间内追求收益,大多数机构投资者都在调整与投资组合相关的结构,而没有具体关注与单个公司相关的基本面。因此,它导致无视公司长期战略的基本价值。管理人员也把他们的最大注意力集中在短期过程上,因为他们可能在此基础上受益或被解雇。在这种情况下,即使公司承诺长期投资会有回报,投资者也不愿意等待长期投资。因此,公司和机构投资者会增加对短期业绩的关注(Thompson et al ., 1988)。


When the high rate of inflation is combined with the high nominal rates, it leads to the increase in uncertainty. Thus, inflation leads to the increase in uncertainty level. The rate of inflation was observed to have lower value in Britain in 1980 in comparison to 1970, but the real investment rates were observed to be quite higher (Cosh, 1987). Because of the same, economic factors lead to the short term pressure increase in Britain. The companies are largely dependent on external funding and they need to apply a higher rate of discount which is higher than the discount of the capital. Most of the British companies were generally self-sufficient in terms of funds and they offered lower time rate of discounts.
Another important factor which has led to the increase in the short term pressures for the British companies is the increase in globalization in the world and the technological advancement in a number of other countries. This helps the investors to move their capital from one company to another company in an easier manner. In addition to this, it has also been easier to move to different markets. Thus, they can easily move their capital in the markets of other countries. With the help of the increase in more and more markets in different nations, it gets easier for the investors to invest as per their own risk profile and also to decide their preference for the return. Because of the rapid development of the new technologies in the recent times, there has been the spread of the information in the entire world in a short span of time. This may lead to the immediate change in the situation of market. Because of the same, there are a large number of possibilities for the investors to invest and pursue short term profits in Britain (Doyle et al, 1992). This has also led to the strengthening of the tendency in the modern society to get immediate returns. Because of the translation of the information from one place to another, there has been a high amount of overload of the information which helps the investors to do the processing of the data at a faster rate. Thus, the translation with the help of the funds can be done in a large number of sources. An example of the same was observed in change in the percentage increase of the stocks which were publically listed in UK from 46 percent in 1960s to 89 percent in 2010.
Thus, the technological advancement can lead to the tracking of the performance of the companies in a regular manner which helps them to focus more and more on the short term returns. This often leads to the application of more and more pressures in the short term companies in Britain. The clients generally do not like to invest on the longer term perspectives and they do not accept waiting for longer times. This leads to the increase in the short term pressures. In order to pursue the returns in short times, most of the institutional investors do the adjustments of their structure related to the portfolio without any specific attention on the fundamentals related to the individual companies. Thus, it leads to the disregarding of the fundamental values of the firm’s long term strategies. The managers also give their maximum concentration on the short term processes as they may be benefitted or fired on the basis of the same. Under such a condition, even if the companies promise for a return on a long term investment, the investors would not like to wait for the long term investment. Thus, the companies and the institutional investors would increase their focus on the short term results (Thompson et al, 1988).