The Rise of Institutional Investors

Oxford Handbooks Online, 2015

This chapter examines the role of institutional investors in corporate governance and whether regulation is likely to encourage them to become active stewards. It considers the lessons that can be learned from the US experience for the EU’s 2014 proposed amendments to the Shareholder Rights Directive. After reviewing how institutional investors fit within the historical evolution of finance, the chapter documents the growth in institutions equity holdings over time. It explains how institutional investors are governed and organize share voting before turning to two competing hypotheses to account for the relative passivity of institutional investors: the excessive regulation and the inadequate incentives hypotheses. In evaluating these hypotheses, it reviews the results of the SEC’s attempt to incentivize mutual funds to vote their shares. The chapter concludes by highlighting the role of hedge funds in catalyzing institutional shareholders, along with some of the risks associated w...

2003

Applied Economics, 2011

Theoretical Inquiries in Law, 2015

The purpose of this Article is to consider a novel framework for institutional shareholders’ activism in the United States. This new activism framework would be aimed at improving, at minimal costs, the performance of the portfolio companies in which institutional shareholders invest. The Article begins by laying out this new activism framework and then compares the proposed framework with the prevalent mode of activism through hedge funds. The Article concludes with a discussion of certain implementation challenges, and calls for future research into the proposed activism framework.

De Gruyter eBooks, 1994

2004

Academy of Management Review, 1999

Academia Environmental Sciences and Sustainability, 2024

In an effort to substitute antibiotics in high-energy diets fed to feedlot cattle, probiotics have emerged as a viable alternative. In this study, increase of animals body weight (BW) and average daily gain (ADG) were used as indicators of probiotics Limosilactobacillus (L.) fermentum CRL2085 and L. mucosae CRL2069 (108–109 CFU/g) supplementation (individually or combined) to grain-based diets containing or not monensin during different periods of feedlot fattening cycle. Results showed that the greatest cattle BW (116.6 kg) and ADG (1.19 ± 0.17 kg/animal/day) were achieved when CRL2085 probiotic was individually supplied during 56 days (after adaptation period) in the absence of monensin (p  0.01). In the presence of monensin, reduced BW and ADG mean values were obtained during the whole feedlot cycle (98 days) by probiotics supplementation. Thus, L. fermentum CRL2085 probiotic strain administered to feedlot cattle fed diets without monensin may result in a greater cumulative BW and ADG with a shorter administration time comparing with diets containing the ionophore.