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Institutional investors and corporate governance

Dasgupta, Amil, Fos, Vyacheslav and Sautner, Zacharias (2021) Institutional investors and corporate governance. Foundations and Trends in Finance, 12 (4). 276 - 394. ISSN 1567-2395

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Identification Number: 10.1561/0500000056

Abstract

We provide a comprehensive overview of the role of institutional investors in corporate governance with three main components. First, we establish new stylized facts documenting the evolution and importance of institutional ownership. Second, we provide a detailed characterization of key aspects of the legal and regulatory setting within which institutional investors govern portfolio firms. Third, we synthesize the evolving response of the recent theoretical and empirical academic literature in finance to the emergence of institutional investors in corporate governance. We highlight how the defining aspect of institutional investors – the fact that they are financial intermediaries – differentiates them in their governance role from standard principal blockholders. Further, not all institutional investors are identical, and we pay close attention to heterogeneity amongst institutional investors as blockholders.

Item Type: Article
Official URL: https://www.nowpublishers.com/FIN
Additional Information: © 2021 The Authors
Divisions: Finance
Subjects: H Social Sciences > HG Finance
Date Deposited: 23 Sep 2021 08:54
Last Modified: 20 Oct 2021 03:02
URI: http://eprints.lse.ac.uk/id/eprint/112114

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