Harvard Corporate Governance

SEPTEMBER 26, 2023

Bebchuk and Roberto Tallarita ; How Much Do Investors Care about Social Responsibility? Institutional Investors, climate disclosure, and carbon emissions There is an ongoing debate over the role institutional investors play in the global effort to control climate risk.

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Harvard Corporate Governance

NOVEMBER 6, 2023

Normal 0 false false false EN-US ZH-CN AR-SA Green investors, frustrated with what they see as inaction by governments, increasingly seek to use capital markets to pressure companies to combat climate change. Green investors make companies greener. This post is based on their recent NBER and SSRN working paper. more…)

Marketability 240

Marketability 240

Harvard Corporate Governance

MARCH 24, 2024

Custodians play a vital role in financial markets, reinforcing trust and serving investors by safeguarding assets. If adopted, the Commission’s proposed amendments would disrupt the entire custodial ecosystem, driving up costs for investors and reducing their access to professional investment advice. more…)

Marketability 140

Marketability 140

Harvard Corporate Governance

APRIL 28, 2023

Related research from the Program on Corporate Governance includes The Illusory Promise of Stakeholder Governance (discussed on the Forum here ) by Lucian Bebchuk and Roberto Tallarita; How Much Do Investors Care about Social Responsibility? A third question elicits investors’ level of concern about climate change. more…)

Finance 226

Finance Marketability Equity 226

Harvard Corporate Governance

FEBRUARY 20, 2024

Venture capital (VC) investors play an important role in advising, monitoring, and providing expertise to entrepreneurial startups. VC investors typically have substantial control rights, and actively seek to constrain managerial discretion over key decisions through the appointment of board representatives.

Finance 145

Finance 145

Harvard Corporate Governance

MAY 7, 2024

His hope, if not expectation, was that the rise of the institutional investor would help the franchise transition from an “unimportant formalism” to an importance of source of discipline. Implicitly, the premise assumes that the voting rights and the economic rights of share ownership are inextricably linked—i.e., are “coupled.”

Banking 133

Banking Finance 133

Harvard Corporate Governance

AUGUST 3, 2023

Voting against management-nominated directors is an important mechanism for institutional investors to convey their dissatisfaction with a wide array of corporate policies and performance. Notably, in 2021, activist investor Engine No. Notably, in 2021, activist investor Engine No. However, none of the social subcategories (e.g.,

Finance 189

Finance Marketability 189

Harvard Corporate Governance

DECEMBER 15, 2023

Bebchuk and Roberto Tallarita; Companies Should Maximize Shareholder Welfare Not Market Value (discussed on the Forum here ) by Oliver Hart and Luigi Zingales; How Much Do Investors Care about Social Responsibility? Investors have switched from competition to collaboration to combat climate change. more…)

Marketability 154

Marketability 154

Harvard Corporate Governance

SEPTEMBER 16, 2023

Data from year-end 2022 shows the investment horizon gap between companies and investors [1] remains slim, though for the first time since our tracking began, investors are leading with longer investment horizons than companies. We highlight a few of the key drivers in corporate and investor investment horizon changes below.

Marketability 182

Marketability 182

Harvard Corporate Governance

JUNE 3, 2022

Investors rejected CEO compensation proposals through Say-on-Pay votes at a record rate in the 2021 proxy season, even though pay remained flat in FY2020. Say-on-Pay votes held as of May 9 indicate that investor support for CEO packages continues to erode at many companies. Key Takeaways. S&P 500) companies. S&P 500).

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Harvard Corporate Governance

JANUARY 18, 2023

Posted by James Chalmers, Nadja Picard, and Hilary Eastman, PricewaterhouseCoopers LLP, on Wednesday, January 18, 2023 Editor's Note: James Chalmers is Global Assurance Leader, Nadja Picard is Global Reporting Leader, and Hilary Eastman is Head of Global Investor at PricewaterhouseCoopers LLP. This post is based on their PwC memorandum.

Marketability 214

Marketability 214

Harvard Corporate Governance

JUNE 3, 2023

Bebchuk and Roberto Tallarita ; How Much Do Investors Care about Social Responsibility? The Institutional Investors Group on Climate Change (IIGCC), a European membership body for investor collaboration on climate change, announced the launch of its Net Zero Engagement Initiative (NZEI).

Marketability 221

Marketability 221

Harvard Corporate Governance

NOVEMBER 13, 2023

The 2023 proxy season reflected a post-pandemic “return to normal” with investors balancing increased focus on financial materiality with ESG considerations. 1: Institutional investors go all-in on financial materiality. Global institutional investors in the U.S. This post is based on a Teneo memorandum by Ms.

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Harvard Corporate Governance

NOVEMBER 30, 2023

Bebchuk and Roberto Tallarita; How Much Do Investors Care about Social Responsibility? Related research from the Program on Corporate Governance includes The Illusory Promise of Stakeholder Governance (discussed on the Forum here ); Does Enlightened Shareholder Value Add Value? discussed on the Forum here ) both by Lucian A.

Equity 189

Equity Marketability 189

Harvard Corporate Governance

APRIL 17, 2024

This proxy season, some of the world’s biggest fund managers are launching or expanding pass-through voting programs to give their fund investors a say on how shares of portfolio companies are voted. This post is based on their Broadridge memorandum.

Banking 145

Banking 145

Harvard Corporate Governance

MARCH 18, 2023

This is the conception of corporate purpose articulated in The New Paradigm (issued by the World Economic Forum’s International Business Council in 2016), supported by the Business Roundtable beginning in 2019, and widely accepted by corporate leaders, investors, companies, and practitioners. Schwartz , Sabastian V. Niles, Carmen X.

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Harvard Corporate Governance

MARCH 8, 2024

Bebchuk and Roberto Tallarita; How Much Do Investors Care About Social Responsibility? The market-wide introduction of zero-commission trading by major brokerages substantially reduced retail investors’ cost of entering the stock market and can be linked to an increase in retail ownership at certain firms.

Finance 157

Finance Marketability Technology 157

Harvard Corporate Governance

FEBRUARY 28, 2023

The Problem of Bundled Commissions Securities firms like Morgan Stanley and Goldman Sachs typically offer investors potentially valuable research as well as trading services. These firms have long preferred that investors pay for both trade execution and research services with a single bundled commission.

Marketability 189

Marketability 189

Harvard Corporate Governance

OCTOBER 24, 2022

Perhaps the most important corporate law debate over the last several years concerns whether directors and executives should manage corporations to maximize value for investors, or to also take into account the interests of other stakeholders or society (see, e.g., Hart and Zingales, 2017 ; Bebchuk and Tallarita, 2020 ; Rock, 2021 ).

Marketability 261

Marketability 261

Harvard Corporate Governance

FEBRUARY 3, 2023

Over the past seventy years, institutional investors’ ownership of publicly traded U.S. The “Big Three” of BlackRock, Vanguard, and State Street Global Investors, for example, held more than 20 percent of S&P 500 shares in 2017 as compared to 5 percent in 1998. As a result, a large fraction of the U.S.

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Harvard Corporate Governance

APRIL 8, 2022

The GameStop trading frenzy in 2021 marked the reemergence of the retail investor in the securities markets. An unprecedented number of new and largely inexperienced investors opened app-based brokerage accounts and began trading so-called meme stocks issued by companies that included GameStop, AMC and Express.

Marketability 213

Marketability Technology Finance 213

Harvard Corporate Governance

JUNE 28, 2022

It is in that spirit that we express our gratitude for the opportunity to comment on the Commission’s proposal to require public disclosure to investors of meaningful information about the substantial risks that climate change poses for the issuers of publicly traded securities. Our reasoning is simple.

Marketability 242

Marketability 242

Law 360 M&A

MAY 9, 2024

A Delaware Superior Court judge dismissed most insurers from a renewable energy company and its now-former CEO's action seeking coverage for an underlying investor suit over devalued shares, saying Thursday that a "no action" clause in one set of policies and a prior acts exclusion in another preclude coverage.

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98

Harvard Corporate Governance

APRIL 13, 2023

Related research from the Program on Corporate Governance includes The Illusory Promise of Stakeholder Governance (discussed on the Forum here ) by Lucian Bebchuk and Roberto Tallarita; How Much Do Investors Care about Social Responsibility? Investor engagement has taken off [1].

Equity 182

Equity Marketability 182

Harvard Corporate Governance

APRIL 11, 2022

As a board member it is critical to stay informed and up to date to ensure effective oversight over strategy and risk as well as to manage the company’s ability to meet rapidly evolving investor, market and regulatory expectations. While directors’ duties have not changed, investor expectations have. ESG is on the agenda.

Marketability 214

Marketability 214

Mckinsey and Company

FEBRUARY 22, 2024

Sophisticated investors are more likely to afford a company more time to let its strategy play out, even during volatility. But first, they need a clear equity story.

Equity 139

Equity Corporate Finance Finance 139

Harvard Corporate Governance

JANUARY 7, 2024

Bebchuk and Scott Hirst; The Agency Problems of Institutional Investors (discussed on the Forum here ) by Lucian A. Bebchuk, Alma Cohen, and Scott Hirst; and The Limits of Portfolio Primacy (discussed on the Forum here ) by Roberto Tallarita.

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Harvard Corporate Governance

DECEMBER 1, 2022

Investors must get to grips with the governance issues and growing business risks as a digitally powered world grapples with the need for more secure defenses. Despite company awareness, cybersecurity isn’t a high priority for many investors. This post is based on her AllianceBernstein memorandum. Cyberattacks are very costly.

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221

Harvard Corporate Governance

JUNE 10, 2022

This post is based on his recent remarks before the Investor Advisory Committee. It is great to join the Investor Advisory Committee (IAC) today. Thank you for volunteering your time and energy on behalf of investors. Thank you for that introduction, Christopher. Good morning.

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Harvard Corporate Governance

APRIL 13, 2022

This post is based on his recent remarks before the Ceres Investor Briefing. It’s good to be with Ceres for today’s investor briefing. The core bargain from the 1930s is that investors get to decide which risks to take, as long as public companies provide full and fair disclosure and are truthful in those disclosures.

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214

Harvard Corporate Governance

JUNE 23, 2022

We agree with the Thirty Professors’ Letter and the Coates Letter that the SEC has broad statutory authority to require disclosures for the protection of investors.

Compliance 214

Compliance Finance 214

Harvard Corporate Governance

JULY 14, 2023

2023 has seen investors support significantly less environmental and social proposals in past years. In the US, the decrease in average investor support of environmental and social shareholder proposals during 2022 was largely attributed to a change in SEC rules allowing more prescriptive proposals to reach the ballot.

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100

Harvard Corporate Governance

MAY 30, 2023

During 1Q 2023, investors launched 27 campaigns against 26 companies, a 24% decline from 4Q 2022. The valuation decline and increased cost of capital means activist investors will focus on profitability and idiosyncratic opportunities of potential targets.

Equity 162

Equity 162

Law 360 M&A

MAY 13, 2024

An investor has sued a blank-check company and several of its top brass in Delaware Chancery Court, alleging the defendants protected their buy-ins while leaving public investors to suffer losses following a merger with satellite imaging company BlackSky Holdings Inc.

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52

Mckinsey and Company

NOVEMBER 28, 2023

Investor relations strategy should prioritize long-term investors who are the true owners of your company.

Corporate Finance 116

Corporate Finance Finance 116

RNC

MAY 14, 2024

Understanding goodwill is essential for investors as it represents an intangible asset that can significantly impact a company’s valuation and financial health. In this blog post, we will explore the concept of goodwill, its significance, how it is calculated, and key considerations investors should consider when analysing it.

Intangible Assets 52

Intangible Assets Fair Market Value Marketability Technology 52

Law 360 M&A

MAY 16, 2024

A New York federal judge has dismissed a lawsuit by shareholders of digital finance platform MoneyLion, who allege the company and its directors approved a reverse stock split that stripped preferred shareholders of their rights, saying the investors should have known the consequences of the vote.

Finance 52

Finance 52