The Stewardship Role of Investors

Poor stewardship by investors has been argued to be a cause of poor corporate governance. Moreover, when investors do engage with companies, they do so to increase short-term profit at the expense of long-run value. This talk will critically analyse the evidence on whether shareholder activism is beneficial for long-term value and suggest policies to promote the 'good' type of shareholder engagement. It will stress that reform must extend far beyond asset managers to the entire investment i...