Ownership, Activism and Engagement: Institutional Investors as Active Owners

Authors: McNulty, T. and Nordberg, D.

http://eprints.bournemouth.ac.uk/22566/

http://dx.doi.org/10.1111/corg.12143

Journal: Corporate Governance (Oxford): an international review

Volume: Online First

ISSN: 1467-8683

DOI: 10.1111/corg.12143

Research Question We research two questions: First, why do some institutional investors operate at a distance from organizations seemingly acting only to “exit” and “trade” shares while others actively engage through various means of “voice”? Second, what processes and behaviour are associated with active ownership?

Research Findings/Insights We develop the concept of active ownership by drawing on contrasting theories and images of ownership, identifying antecedents of active ownership and distinguishing between alternative processes of active ownership.

Theoretical/Academic Implications Alternative pathways to active ownership contrast the distant, sometimes adversarial nature of shareholder activism with an engaged, collaborative relationship between investors and corporations. Few studies examine active ownership as a process of engagement and mutual exchange between parties taking a generally longer-term perspective towards investment in the firm and its affairs. After modelling active ownership, we develop a research agenda of substantive issues ranging from market and institutional conditions, through investment organization and practice, to board and investor relations.

Practitioner/Policy Implications Opening up the multidimensionality of engagement and relations between investors and corporations is crucial to promoting good corporate governance. Policymakers and practitioners require such knowledge when anticipating and developing adjustments to institutions of corporate governance. This article is protected by copyright. All rights reserved.

This data was imported from Scopus:

Authors: McNulty, T. and Nordberg, D.

http://eprints.bournemouth.ac.uk/22566/

Journal: Corporate Governance (Oxford)

Volume: 24

Issue: 3

Pages: 346-358

eISSN: 1467-8683

ISSN: 0964-8410

DOI: 10.1111/corg.12143

© 2016 John Wiley & Sons Ltd. Manuscript Type: Conceptual Research Question/Issue: We research two questions: First, why do some institutional investors operate at a distance from organizations seemingly acting only to "exit" and "trade" shares, while others actively engage through various means of "voice"? Second, what processes and behaviour are associated with active ownership? Research Findings/Insights: We develop the concept of active ownership by drawing on contrasting theories and images of ownership, identifying antecedents of active ownership and distinguishing between alternative processes of active ownership. Theoretical/Academic Implications: Alternative pathways to active ownership contrast the distant, sometimes adversarial nature of shareholder activism with an engaged, collaborative relationship between investors and corporations. Few studies examine active ownership as a process of engagement and mutual exchange between parties taking a generally longer-term perspective toward investment in the firm and its affairs. After modeling active ownership, we develop a research agenda of substantive issues ranging from market and institutional conditions, through investment organization and practice, to board and investor relations. Practitioner/Policy Implications: Opening up the multidimensionality of engagement and relations between investors and corporations is crucial to promoting good corporate governance. Policym akers and practitioners require such knowledge when anticipating and developing adjustments to institutions of corporate governance.

This source preferred by Donald Nordberg

This data was imported from Web of Science (Lite):

Authors: McNulty, T. and Nordberg, D.

http://eprints.bournemouth.ac.uk/22566/

Journal: CORPORATE GOVERNANCE-AN INTERNATIONAL REVIEW

Volume: 24

Issue: 3

Pages: 346-358

eISSN: 1467-8683

ISSN: 0964-8410

DOI: 10.1111/corg.12143

The data on this page was last updated at 04:46 on November 24, 2017.