Corporate governance and investor activism workshop
The workshop explored the costs and benefits of different forms of shareholder activism with the objective of understanding how different mechanisms complement each other.
A fundamental question for enhancing stable growth in modern economies is how enterprises should be governed to lead managers to maximize the welfare of an economy. Monitoring may discipline managers to adapt to ever-changing economic environments and maintain comparative advantage. However, requests by outside shareholders may not always be motivated by the specific needs of a firm and may just cater to the last corporate governance fad. There are also significant concerns that shareholder pressure may induce firms to focus on short-term goals at the expenses of long-term performance. Which types of governance structures are more likely to maximize the welfare of an economy? How do these depend on local culture and level of development?
The conference gathered a top group of academics to explore these questions and was feature a panel to involve prominent practitioners in the discourse.