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Full-Text Articles in Law
The False Hope Of Stewardship In The Context Of Controlling Shareholders: Making Sense Out Of The Global Transplant Of A Legal Misfit, Dan W. Puchniak
The False Hope Of Stewardship In The Context Of Controlling Shareholders: Making Sense Out Of The Global Transplant Of A Legal Misfit, Dan W. Puchniak
Research Collection Yong Pung How School Of Law
In 2010, the United Kingdom issued the world’s first stewardship code. Since then, stewardship codes have been issued in many of the world’s leading economies and now exist in 20 jurisdictions on six continents, with more jurisdictions considering adopting them. In the UK, stewardship codes were promised to transform rationally passive institutional investors into actively engaged shareholders to prevent another Global Financial Crisis. More recently, the new 2020 UK Code has been promoted as a mechanism to save the planet by incentivizing institutional investors to pressure listed companies to focus on ESG.There is a vigorous debate and developed literature on …
Corporate Purpose Beyond Borders: A Key To Saving Our Planet Or Colonialism Repackaged?, Roza Nurgozhayeva, Dan W. Puchniak
Corporate Purpose Beyond Borders: A Key To Saving Our Planet Or Colonialism Repackaged?, Roza Nurgozhayeva, Dan W. Puchniak
Research Collection Yong Pung How School Of Law
The “corporate purpose” debate, while extremely important, has largely been built on an understanding of corporate law and governance that is local – jurisdiction bound – while the issue of climate change is global; pollution does not respect jurisdictional borders. Despite this, in practice, states, multinational corporations, and transnational organizations are increasingly using formal and informal mechanisms to shape sustainable corporate governance beyond jurisdictional borders – a colossal development that has been hiding in plain sight.This article develops a taxonomy for identifying and analyzing the forces driving corporate purpose beyond borders: state-based, firm-based, and organization-based “global corporate law and governance”. …
Rethinking Acting In Concert: Activist Esg Stewardship Is Shareholder Democracy, Dan W. Puchniak, Umakanth Varottil
Rethinking Acting In Concert: Activist Esg Stewardship Is Shareholder Democracy, Dan W. Puchniak, Umakanth Varottil
Research Collection Yong Pung How School Of Law
In May 2021, Engine No. 1, an investment fund, was lauded by the responsible investment community for successfully placing three dissident independent directors on ExxonMobil’s board. It achieved this by being a catalyst for institutional investors to become backers of environmental shareholder activism. The unprecedented success of Engine No. 1’s campaign has spurred calls for a new, more sustained, activist engagement model by institutional investors, now known as “activist stewardship”.However, there is a significant legal hurdle that has been almost entirely overlooked by those calling for this new approach for institutional investors to become activist stewards: acting in concert rules. …
The Global Sustainability Footprint Of Sovereign Wealth Funds, Hao Liang, Luc Renneboog
The Global Sustainability Footprint Of Sovereign Wealth Funds, Hao Liang, Luc Renneboog
Research Collection Lee Kong Chian School Of Business
With the emergence of sovereign wealth funds (SWFs) around the world managing equity of over $8 trillion, their impact on the corporate landscape and social welfare is being scrutinized. This study investigates whether and how SWFs incorporate environmental, social, and governance (ESG) considerations in their investment decisions in publicly listed corporations, as well as the subsequent evolution of target firms' ESG performance. We find that SWF funds do consider the level of past ESG performance as well as recent ESG score improvement when taking ownership stakes in listed companies. These results are driven by the SWF funds that do have …