A conceptual mapping of the logics of institutional investors' corporate governance responsibilities: The case for "custodian" investor stewardship

Rachelle Belinga and Blanche Segrestin ()
Additional contact information
Rachelle Belinga: PSL - Université Paris Sciences et Lettres
Blanche Segrestin: Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres

Post-Print from HAL

Abstract: Institutional investor activism has received increasing attention for corporate governance scholars and policymakers. The promise of institutional monitoring of corporations has fueled social expectations over institutional investors. In the aftermath of the financial crisis, recent corporate governance rules have attempted to frame and rule institutional investors' corporate governance behavior. We draw upon these rules and legal research to unpack the rationales of these specific expectations. Employing an institutional logics perspective, we map the different logics of responsibility which drive institutional investors' corporate governance behaviors. This help us critically examine the notion of investor stewardship and propose a unified framework for institutional investors' corporate governance responsibilities. First, we argue that the coexistence of contrasted logics creates new sources of conflicts of interests for institutional investors. Second, we remark that corporate governance rules for institutional investors do not meet social welfare concerns. We then propose a custodian logic of responsibility for institutional investors which combines monitoring concerns and a concern for responsible management.

Date: 2019-06-21
Note: View the original document on HAL open archive server: https://minesparis-psl.hal.science/hal-02444756
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in European Academy of Management, Jun 2019, Lisboa, Portugal

Downloads: (external link)
https://minesparis-psl.hal.science/hal-02444756/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02444756

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().