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The Impact of Design on Stock Market PerformanceThe Design Council has completed an analysis of the performance of UK FTSE quoted companies over the last ten years, between 1994 and 2003, encompassing a long bull market period, from March 1995 to March 2000, the bear market period from March 2000 to March 2003, and the more recent recovery period.
The key finding of the study is that a group of 63 companies identified to be effective users of design outperformed the FTSE 100 index over the full period by 200%, and also beat their peers in the recent bull and bear markets. A number of prior studies have been undertaken around the world but all have been limited in their methodology or scale. We believe that this study offers the first conclusive evidence for the relationship between the effective use of design by corporates and an improved share price performance and therefore greater shareholder returns.
The companies in this study were selected principally on the basis of their being nominated for and winning design-related awards. The companies were grouped into two portfolios - the 'Design Portfolio' and the 'Emerging Portfolio' - comprising, respectively, high and lower scorers in terms of the number of awards won by each company and therefore the effectiveness of their use of design. The chart below summarises the performance of these two portfolios over the ten-y
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