The Institutional Investors and Corporate Governance
The years between 1990-2000 represented the rising power period for the institutional investors, especially within the developed countries. In the Anglo-Saxon environment, such a growth significantly modified the structure of companies’ shareholder frameworks. The development and the institutionaliz...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2006-12-01
|
| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: | http://www.ectap.ro/articole/169.pdf |
| _version_ | 1811333053922934784 |
|---|---|
| author | Niculae Feleaga |
| author_facet | Niculae Feleaga |
| author_sort | Niculae Feleaga |
| collection | DOAJ |
| description | The years between 1990-2000 represented the rising power period for the institutional investors, especially within the developed countries. In the Anglo-Saxon environment, such a growth significantly modified the structure of companies’ shareholder frameworks. The development and the institutionalization of the stock exchange market determined the companies’ bonds to be more concentrated within the hands of the financial institutions, which have a superior economic expertise, rather than do the natural persons when saving. In order to diminish the informational lack of symmetry, between the company’s leaders and its shareholders, and for influencing the leaders in managing the enterprise – with the purpose of maximizing value – some institutional investors tried to implement an external control system. Therefore, they formulated new corporate governance procedures. The development of the institutional investors is part of a reform movement targeted towards the macro-financial environment. That is why, two important elements deserve to be mentioned: the households’ financial patrimonies and the structure of the financing frameworks. The institutional investors are essentially the mutual funds, the insurance companies and the pension funds, and therefore they manage considerable amounts of capital (in thousands of billions of dollars) within the assembly of OCDE countries. |
| first_indexed | 2024-04-13T16:46:10Z |
| format | Article |
| id | doaj.art-0de14be116964643bb6798185a3a095e |
| institution | Directory Open Access Journal |
| issn | 1841-8678 |
| language | English |
| last_indexed | 2024-04-13T16:46:10Z |
| publishDate | 2006-12-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-0de14be116964643bb6798185a3a095e2022-12-22T02:39:04ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86782006-12-0110(505)10(505)5560The Institutional Investors and Corporate GovernanceNiculae FeleagaThe years between 1990-2000 represented the rising power period for the institutional investors, especially within the developed countries. In the Anglo-Saxon environment, such a growth significantly modified the structure of companies’ shareholder frameworks. The development and the institutionalization of the stock exchange market determined the companies’ bonds to be more concentrated within the hands of the financial institutions, which have a superior economic expertise, rather than do the natural persons when saving. In order to diminish the informational lack of symmetry, between the company’s leaders and its shareholders, and for influencing the leaders in managing the enterprise – with the purpose of maximizing value – some institutional investors tried to implement an external control system. Therefore, they formulated new corporate governance procedures. The development of the institutional investors is part of a reform movement targeted towards the macro-financial environment. That is why, two important elements deserve to be mentioned: the households’ financial patrimonies and the structure of the financing frameworks. The institutional investors are essentially the mutual funds, the insurance companies and the pension funds, and therefore they manage considerable amounts of capital (in thousands of billions of dollars) within the assembly of OCDE countries.http://www.ectap.ro/articole/169.pdfmutual fundspension fundssustainabilityexitvoice |
| spellingShingle | Niculae Feleaga The Institutional Investors and Corporate Governance Theoretical and Applied Economics mutual funds pension funds sustainability exit voice |
| title | The Institutional Investors and Corporate Governance |
| title_full | The Institutional Investors and Corporate Governance |
| title_fullStr | The Institutional Investors and Corporate Governance |
| title_full_unstemmed | The Institutional Investors and Corporate Governance |
| title_short | The Institutional Investors and Corporate Governance |
| title_sort | institutional investors and corporate governance |
| topic | mutual funds pension funds sustainability exit voice |
| url | http://www.ectap.ro/articole/169.pdf |
| work_keys_str_mv | AT niculaefeleaga theinstitutionalinvestorsandcorporategovernance AT niculaefeleaga institutionalinvestorsandcorporategovernance |