http://business.financialpost.com/
For several years, participants in the technology sector have advocated extending the flow-through share program currently available to resource companies by making it available to the innovation sector. With the erosion of our manufacturing base and the commodity and energy downturn, the case for using flow-through shares to catalyze our underperforming innovation sector has become more compelling.
A recent paper by Vijay Jog, published by the University of Calgary’s School of Public Policy (and taken up in FP Comment in Kevin Libin’s column on February 9) found poor investment returns for flow-through investors between 2008–2012.
From that, the paper concludes that between the investor losses, the cost to government and the potential “crowding out” of investment in other sectors, flow-through shares do more harm than good and should be phased out.