Externalities occur where an economic actor takes a decision which results in actions that affect other parties without their consent. In most cases, the creator of the externality will be a corporation because they are the most important actors in modern economies. There is a market failure as...

This paper was written in response to the OECD 2014 Review of the OECD Principles of Corporate Governance, which sought to modernize the 2004 Principles. We provide a detailed textual analysis of the draft revised text of the Principles and propose concrete amendments with the aim of managing...

This paper supports the objective of the proposed revision of the Shareholder Rights Directive (Directive 2007/36/EC), that is, to contribute to the long-term sustainability of EU companies. However, it expresses concern that the measures being considered will not achieve their intended purpose,...

The 2017 revised Shareholder Rights Directive gives shareholders a say on executive pay and requires institutional investors to improve shareholder engagement. The directive is thus designed to provide a counterweight to the increasingly dominant ‘shareholder' model of corporate governance...

The current model of corporate governance needs reform. There is mounting evidence that the practices of shareholder primacy drive company directors and executives to adopt the same short time horizon as financial markets. Pressure to meet the demands of the financial markets drives stock...

Pension funds play a linchpin role in Western, capitalist economies by allowing citizens to save for their future, and are generally viewed as fundamental to the stability and long-term orientation of the production system as a whole. It is essential to ensure that there is clarity as to...