Economics, Econometrics and Finance
8 years ago

Institutional investors' role in corporate governance under scrutiny for societal impact.

Vanderbilt law review
The Evolving Role of Institutional Investors in Corporate Governance and Corporate Litigation
Randall S. Thomas

Paper Summary

Institutional investors play a crucial role in overseeing corporate management to reduce agency costs and align interests with shareholders. However, challenges like high monitoring expenses, coordination issues, and conflicting interests hinder their effectiveness. The potential benefits of institutional activism are uncertain due to these obstacles.

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