Understanding Institutional Shareholder Activism

Author : Bo Gong
Publisher : Routledge
Page : 313 pages
File Size : 48,7 Mb
Release : 2013-12-13
Category : Law
ISBN : 9781136015762

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Understanding Institutional Shareholder Activism by Bo Gong Pdf

Institutional shareholder participation has long been considered as vital to good corporate governance yet its potential does not seem to have been realized. The recent banking crisis exposed the passivity of some institutional shareholders, many of whom appear to have chosen to sell their stakes in the banks rather than intervene or challenge the board when they realized the strategies followed by the banks were excessively risky. Institutional shareholders’ role to scrutinize and monitor the decisions of boards and executive management in the banking sector in the UK is considered by many to be a failure, resulting in the phenomenon of ‘ownerless corporations’, as described by Lord Myners. In China, despite the fast rising of institutional investment in the securities market, institutional shareholders have not yet played a contributory role in monitoring corporate managers in listed companies. Drawing on empirical evidence this book seeks to systematically analyses institutional shareholders’ incentives to activism to explain when and why shareholder activism will occur. The book puts forward a model which explains the factors that determine institutional shareholders’ propensity for activism. The model both elaborates the collective benefits of activism as a means of achieving managerial accountability asks whether and when shareholder activism is rational for any individual shareholder. The book then goes to on to apply these finding to both the UK and China in order to explain the varying levels of shareholder activism in each jurisdiction. The book is the first to take an in-depth look at institutional share-holder activism in China providing prescriptions to promote greater shareholder engagement and exploring the potential it holds for improving corporate governance in the region.

Author : Michael J. Rubach
Publisher : Taylor & Francis
Page : 202 pages
File Size : 52,9 Mb
Release : 1999
Category : Business & Economics
ISBN : 0815335024

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Institutional Shareholder Activism by Michael J. Rubach Pdf

First Published in 2000. Routledge is an imprint of Taylor & Francis, an informa company.

Author : Iris H-Y Chiu
Publisher : Bloomsbury Publishing
Page : 204 pages
File Size : 41,9 Mb
Release : 2010-10-12
Category : Law
ISBN : 9781847316042

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The Foundations and Anatomy of Shareholder Activism by Iris H-Y Chiu Pdf

The Foundations and Anatomy of Shareholder Activism examines the landscape of contemporary shareholder activism in the UK. The book focuses on minority shareholder activism in publicly listed companies. It argues that contemporary shareholder activism in the UK is dominated by two groups; one, the institutional shareholders whose shareholder activism is largely seen as a driving force for good corporate governance, and two, the hedge funds whose shareholder activism is based on value extraction and exit. The book provides a detailed examination of both types of shareholder activism, and discusses critically the nature of, motivations for and consequences following both types of shareholder activism. The book then locates both types of shareholder activism in the theory of the company and the fabric of company law, and argues that institutional shareholder activism based on exercising a voice at general meetings is well supported in theory and law. The call for institutions to engage in more informal forms of activism in the name of 'stewardship' may bring about challenges to the current patterns of activism that institutions engage in. The book argues, however, that a more cautious view of hedge fund activism and the pattern of value extraction and exit should be taken. More empirical evidence is likely to be necessary, however, to weigh up the long terms benefits and costs of hedge fund activism.

Author : Bo Gong
Publisher : Unknown
Page : 0 pages
File Size : 44,6 Mb
Release : 2014
Category : Corporate governance
ISBN : 0415640334

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Understanding Institutional Shareholder Activisim by Bo Gong Pdf

Institutional shareholder participation has long been considered as vital to good corporate governance yet its potential does not seem to have been realized particularly in light of the recent banking crises. Drawing on empirical evidence this book analyses institutional shareholders' incentives to see when and why shareholder activism will occur. The book explains the factors that determine institutional shareholders' propensity for activism and applies these finding to both the UK and China in order to explain the varying levels of shareholder activism in each jurisdiction.

Author : William Bratton,Joseph A. McCahery
Publisher : OUP Oxford
Page : 664 pages
File Size : 47,8 Mb
Release : 2015-08-20
Category : Law
ISBN : 9780191039799

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Institutional Investor Activism by William Bratton,Joseph A. McCahery Pdf

The past two decades has witnessed unprecedented changes in the corporate governance landscape in Europe, the US and Asia. Across many countries, activist investors have pursued engagements with management of target companies. More recently, the role of the hostile activist shareholder has been taken up by a set of hedge funds. Hedge fund activism is characterized by mergers and corporate restructuring, replacement of management and board members, proxy voting, and lobbying of management. These investors target and research companies, take large positions in `their stock, criticize their business plans and governance practices, and confront their managers, demanding action enhancing shareholder value. This book analyses the impact of activists on the companies that they invest, the effects on shareholders and on activists funds themselves. Chapters examine such topic as investors' strategic approaches, the financial returns they produce, and the regulatory frameworks within which they operate. The chapters also provide historical context, both of activist investment and institutional shareholder passivity. The volume facilitates a comparison between the US and the EU, juxtaposing not only regulatory patterns but investment styles.

Author : Lauren Talner
Publisher : Unknown
Page : 60 pages
File Size : 54,6 Mb
Release : 1983
Category : Industries
ISBN : UCAL:B4357665

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The Origins of Shareholder Activism by Lauren Talner Pdf

Author : Alon Brav,Wei Jiang,Hyunseob Kim
Publisher : Now Publishers Inc
Page : 76 pages
File Size : 53,7 Mb
Release : 2010
Category : Business & Economics
ISBN : 9781601983381

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Hedge Fund Activism by Alon Brav,Wei Jiang,Hyunseob Kim Pdf

Hedge Fund Activism begins with a brief outline of the research literature and describes datasets on hedge fund activism.

Author : Jay W. Eisenhofer,Michael J. Barry
Publisher : Wolters Kluwer
Page : 1458 pages
File Size : 40,5 Mb
Release : 2005-01-01
Category : Business & Economics
ISBN : 9780735557000

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Shareholder Activism Handbook by Jay W. Eisenhofer,Michael J. Barry Pdf

Shareholder Activism Handbook is the single most comprehensive guide on all matters relating to enforcing shareholders' rights. As shareholder activism becomes a more integral part of investing, the law continues to respond accordingly. Legislators

Author : OECD,International Finance Corporation
Publisher : OECD Publishing
Page : 76 pages
File Size : 52,8 Mb
Release : 2011-07-01
Category : Electronic
ISBN : 9789264116054

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Corporate Governance Strengthening Latin American Corporate Governance The Role of Institutional Investors by OECD,International Finance Corporation Pdf

This report reflects long-term, in-depth discussion and debate by participants in the Latin American Roundtable on Corporate Governance.

Author : Michael J. Rubach
Publisher : Routledge
Page : 200 pages
File Size : 42,9 Mb
Release : 2021-11-19
Category : Business & Economics
ISBN : 9781000525007

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The Changing Face of Corporate Ownership by Michael J. Rubach Pdf

First Published in 2000. This book examines the shareholder activism of institutional investors and the effect of shareholder activism on portfolio performance. Institutional shareholder activism includes both traditional mechanisms of influence (e.g., filing shareholder proposals) and relationship investing (e.g., long-term interorganizational contacts between owners and a corporation’s top managers).

Author : Jennifer G. Hill,Randall S. Thomas
Publisher : Edward Elgar Publishing
Page : 640 pages
File Size : 50,6 Mb
Release : 2015-07-31
Category : Law
ISBN : 9781782546856

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Research Handbook on Shareholder Power by Jennifer G. Hill,Randall S. Thomas Pdf

Much of the history of corporate law has concerned itself not with shareholder power, but rather with its absence. Recent shifts in capital market structure require a reassessment of the role and power of shareholders. These original, specially commiss

Author : Wenge Wang
Publisher : Springer Nature
Page : 259 pages
File Size : 41,6 Mb
Release : 2019-11-22
Category : Business & Economics
ISBN : 9783030195779

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Institutional Activism in Corporate Governance by Wenge Wang Pdf

Using both qualitative and quantitative methods, this book examines whether qualified foreign institutional investors (QFIIs), through their shareholder activism, have a meaningful positive impact on the corporate governance of firms listed on the mainland Chinese stock market. Capital flows into and out of China are still subject to tight controls, and the QFII scheme is one important avenue through which QFIIs can become invested in the Chinese stock market. This book is an invaluable resource for anyone interested in learning about ways to invest in one of the world’s largest economies. Wang discusses in depth what specific opportunities, challenges and restrictions to expect in the process, and how investing in China differs from investing in countries with a more open capital account.

Author : Anonim
Publisher : Unknown
Page : 24 pages
File Size : 41,8 Mb
Release : 2014
Category : Electronic
ISBN : OCLC:1119826226

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Shareholder Activism by Anonim Pdf

Author : Ekrem Solak
Publisher : Routledge
Page : 237 pages
File Size : 44,6 Mb
Release : 2020-05-04
Category : Law
ISBN : 9781000069747

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Shareholder Activism and the Law by Ekrem Solak Pdf

This book provides a complete framework for contemporary shareholder activism and its implications for US corporate governance, which is based on director primacy theory. Under director primacy theory, shareholders do not wish to be involved in the management of the company; in the rare event that they wish to be involved, it is considered a transfer of power from the board of directors to shareholders, which in turn reduces the efficiency of centralised decision-making in public companies. However, this book demonstrates that shareholders do not use their power to transfer corporate control from the board to themselves, and that some form of shareholder activism is even collaborative, which is a new paradigm for US corporate governance. This book shows that while monitoring remains a key contribution of shareholders, they also bring new informational inputs to corporate decision-making that could not be obtained under the traditional board model. Accordingly, contemporary shareholder activism enhances the board’s decision-making and monitoring capacity, without undermining the economic value of the board's authority. Therefore, this book argues that the complete approach of contemporary shareholder activism should be accommodated into US corporate governance. In doing so, this book considers not only legal and regulatory developments in the wake of the 2007–2008 financial crisis, but also the governance developments through by-law amendments. Furthermore, the author makes several recommendations to soften the current director primacy model: establishing a level playing field for private ordering, adopting the proxy access default regime, the majority voting rule, the universal proxy rules, and enhancing the disclosure requirements of shareholders. The book will be of interest to academics and students of corporate governance, both in the US and internationally.

Author : Mihaela Butu
Publisher : Diplomica Verlag
Page : 61 pages
File Size : 47,7 Mb
Release : 2013
Category : Business & Economics
ISBN : 9783842889149

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Shareholder Activism by Hedge Funds: Motivations and Market's Perceptions of Hedge Fund Interventions by Mihaela Butu Pdf

In recent years, hedge funds' successful interventions in some large public companies have revealed their critical role in the corporate governance landscape in the United States and Europe. Due to public opinion, this new form of shareholder activism is accompanied by much polemic. This study examines the nature of hedge fund activism, the types of them, and the market’s perception of interventions in the United States. Starting with a distinction between shareholder activism by traditional institutions, and activism performed by hedge funds, the study elucidates why the latter may be more effective in monitoring management, and reduce agency costs. Analysing the Schedules 13D filed with the U.S. Securities and Exchange Commission, the study provides a classification of activists’ demands into ten distinct categories, arguing that hostile forms of activism are not central for hedge funds, and some more aggressive types of activism are possibly used as a negotiating tool to achieve the activist’s agenda. Using the event study methodology, the author estimates the stock returns around the announcement date. For a better understanding of hedge fund activism, and their demands on target companies, the reader will find two original Schedule 13D filings accompanied by letters to the management. Finally, the paper concludes on a view of the subject through the prism of the 2007/ 2008 financial crisis, outlining some trends in the aftermath of the financial market turmoil.