Shareholder Activism and Institutional Investors

2005 ◽  
Author(s):  
Stephen M. Bainbridge
Keyword(s):  
Institutional Investors ◽  
Shareholder Activism

scholarly journals Impact Of Shareholder Activism On Corporate Governance In China: Evidence From Companies Listed On The Shenzhen Stock Exchange “A” Shares

2016 ◽  
Vol 12 (1) ◽  
pp. 114
Author(s):  
Shaokai Huang ◽  
Rui Xie
Keyword(s):  
Corporate Governance ◽  
Capital Markets ◽  
Institutional Investors ◽  
Stock Exchange ◽  
Rapid Development ◽  
Shareholder Activism ◽  
Listed Companies ◽  
Empirical Estimation ◽  
Positive Behaviors ◽  
Share Structure

This paper investigates impact of shareholder activism on corporate governance in China. The separation of ownership and management of companies often to some extent causes agency problems between shareholders and company managers. In Western countries, shareholders of a company usually actively participate in the company’s management and closely monitor management issues in order to enhance the company’s performance. At present, China’s securities market, along with institutional investors, is undergoing a rapid development. Nevertheless, problems in corporate governance among listed companies have been hindering the development of capital markets in China. Meanwhile, institutional investors have experienced significant growth. Moreover, national policies, as well as the split-share structure reform, further encourage the growth of institutional investors and their active participation in corporate governance for further promotion of the development of capital markets. Making empirical contribution, this paper tests how effective institutional investors participate in the governance of listed companies on the Shenzhen Stock Exchange (SZSE) “A” Shares after share reform in China. Results of empirical estimation indicate that China’s institutional investors do participate in corporate governance, but only to some extent. Positive behaviors of Chinese shareholders have played a favorable role in improving corporate governance.

scholarly journals Shareholder activism and the ethical harnessing of institutional investors

2016 ◽  
Vol 12 (2) ◽  
pp. 189-214 ◽  
Author(s):  
Mila Ivanova
Keyword(s):  
Research Design ◽  
Institutional Investors ◽  
Longitudinal Research ◽  
Case Study Research ◽  
Shareholder Activism ◽  
Research Field ◽  
Future Research ◽  
Content Type ◽  
The Usa ◽  
The Uk

Purpose This study aims to foster a deeper understanding of socio-ethical shareholder activism by outlining the corporate campaigning strategies of a UK-based non-governmental organisation (NGO) and by assessing their impact on both institutional investors and the practices of two multinational companies. As we move into a world where shareholder ownership is becoming more democratised, shareholder activism is gaining prominence in the USA, Europe and Asia, opening new avenues for participation in corporate governance by stakeholders such as NGOs who have traditionally been uninvolved in corporate decisions. Design/methodology/approach The article adopts a qualitative methodology and case study research design. It relies on semi-structured interviews, analysis of documents and participant observation. Findings First, the study sheds light into the ways in which NGOs are connecting themselves to the financial sector. It argues that they can pursue their political goals by framing their arguments in a way that emphasises the short-term financial risks/benefits for investors. Secondly, it demystifies the term “shareholder activism”, transforming it from an action tool belonging only to big and powerful institutions, to a tool which gives other stakeholders such as NGOs and ordinary people a real stake in companies’ affairs. What is more, the study highlights the divergent nature of institutional shareholder activist intervention in the USA and the UK. Research Limitations/implications Given the generally long-term nature of shareholder campaigns, which can sometimes span over several years, it could be beneficial to adopt a longitudinal research design. Future research can endeavour to focus on a number of different campaigns over a period that exceeds three years. Practical Implications The research has implications for NGOs adopting a shareholder activist campaigning model and for policy makers aiming to encourage investor stewardship. Originality/value The fact that the research field of NGO socio-ethical shareholder activism is relatively new and under-explored by academia, coupled with the growing incidence of the phenomenon in the UK and across the world, as well as its potential benefits for society as a whole, renders further investigation into the topic necessary.

Institutional investors, shareholder activism, and earnings management

2011 ◽  
Vol 64 (12) ◽  
pp. 1352-1360 ◽  
Author(s):  
Michael Hadani ◽  
Maria Goranova ◽  
Raihan Khan
Keyword(s):  
Earnings Management ◽  
Institutional Investors ◽  
Shareholder Activism

The evolution and alignment of institutional shareholder engagement through the King and CRISA reports

2020 ◽  
Vol 11 (2) ◽  
pp. 147-153
Author(s):  
Richard Foster
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Institutional Investors ◽  
Shareholder Activism ◽  
Institutional Investor ◽  
Historical Narrative ◽  
Content Type ◽  
Shareholder Engagement ◽  
On The Road ◽  
High Level

Purpose The purpose of this study is to provide a high-level review of the evolution of shareholder activism and institutional investor engagement in the corporate governance ecosystem in South Africa. Furthermore, it specifically seeks to explain the incorporation of such aspects into the various key codes and reports on corporate governance in South Africa since 1994. Design/methodology/approach Historical narrative and analysis. Findings This study highlights how shareholder activism and institutional investor engagement in the corporate governance ecosystem have been considered and addressed in South Africa since the publication of the First King Report in 1994. The progress that has been made specifically with regard to the introduction of a code for institutional investors is highlighted. The study ultimately acknowledges that this evolution is a continuing journey on the road to stakeholder inclusivity and engagement, and then concludes that the specific role and impact of institutional investors, particularly given some of the recent corporate governance failures, will require further consideration going forward. This should ensure the continued alignment of all stakeholders and assist in making the necessary improvements to the overarching governance framework and attendant culture. Originality/value This study is a part of a special issue that looks at the contribution of the King reports to governance globally.

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