Institutional Investors and Corporate Governance
The ECGI Spotlight Series is a global online seminar programme highlighting chosen papers from the ECGI Working Paper Series. The Spotlight Team works together to identify papers from the law and finance series’ that will have broad appeal to members of the ECGI network. On occasion, papers may be identified that are not published in the working paper series and following presentation, they will be invited to publish in the series.
About the event
This Spotlight Series highlighted how the defining aspect of institutional investors differentiates them in their governance role from standard principal block-holders and the heterogeneity amongst institutional investors as block-holders.
The authors provide a comprehensive overview of institutional investors’ role in corporate governance, focusing on three components. First, a detailed characterisation of key aspects of the legal and regulatory setting within which institutional investors operate with respect to the governance of their portfolio firms. Second, the emergence of institutional investors as the modal concentrated owners of public firms in modern economies, using a wide variety of data sources to establish new stylised facts. Third, synthesise the evolving “response” of the academic literature in finance to the emergence of institutional investors in corporate governance, attempting to link theoretical predictions to empirical findings.
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