Business Secretary Vince Cable will today launch a wide-ranging attack on the "murky world of corporate behaviour".
He will pledge to tackle “irrational or rigged” markets, the bonus culture, short-term investment and corporate takeovers.
In his speech to the Liberal Democrat party conference, Cable will announce the government will conduct a review of corporate governance and economic short-termism.
Cable will say: ""We will look at the economic impact of takeovers, shareholder responsibility, corporate incentives and pay. Short-termism and shareholder disengagement are an increasing problem for our economy.
"Short-term investors and financial gamblers value a quick buck above all else, for example, by driving company boards into accepting takeover bids that make no economic sense. We need shareholders that act like long-term owners, alive to the risks of instability and the broader consequences of how the companies they own behave."
"Let me be clear. The government's agenda is not one of laissez-faire. Why should good companies be destroyed by short term investors looking for a speculative killing, while their accomplices in the City make fat fees?
"Why do directors forget their wider duties when a fat cheque is waved before them? Capitalism takes no prisoners and kills competition where it can."
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected