scholarly journals Stewardship and Shareholder Engagement in Germany

2020 ◽  
Author(s):  
Wolf-Georg Ringe
Keyword(s):  
Value Creation ◽  
Institutional Investors ◽  
Best Practice ◽  
Regulatory Framework ◽  
Great Promise ◽  
Political Reason ◽  
Shareholder Engagement ◽  
Asset Managers

Abstract Corporate stewardship holds great promise for the improvement of shareholder engagement and the encouragement of more responsible and long-term oriented value creation. This is particularly true since the outbreak of the global COVID-19 pandemic. Many countries have long adopted a best practice code for the stewardship role of institutional investors and asset managers, but Germany has so far refused to follow that trend. This paper explores the reasons for this reluctance, as well as whether the adoption of a Stewardship Code would still make sense in the regulatory framework of Germany today. Despite the increased presence of shareholder engagement (and even activism), several reasons may be put forward for why lawmakers have refused to adopt a stewardship code. This paper argues that the main political reason for this reluctance lies in the limited geographical reach of such a code, which would primarily be restricted to the (limited) domestic fund industry and would thus be unable to prescribe any meaningful principles to foreign-based asset managers. Still, I argue that the adoption of a code in the German context may make sense, for example to define expectations and to clarify the obligations of investee companies. Most importantly, it would benefit domestic investors that are typically ‘home biased’ and thereby frequently disproportionately invested in domestic funds.

scholarly journals Safety of Mesenchymal Stem Cells for Clinical Application

2012 ◽  
Vol 2012 ◽  
pp. 1-4 ◽  
Author(s):  
Youwei Wang ◽  
Zhi-bo Han ◽  
Yong-ping Song ◽  
Zhong Chao Han
Keyword(s):  
Stem Cells ◽  
Mesenchymal Stem Cells ◽  
Regenerative Medicine ◽  
Therapeutic Agents ◽  
Great Promise ◽  
Safety Issues ◽  
Human Use

Mesenchymal stem cells (MSCs) hold great promise as therapeutic agents in regenerative medicine and autoimmune diseases, based on their differentiation abilities and immunosuppressive properties. However, the therapeutic applications raise a series of questions about the safety of culture-expanded MSCs for human use. This paper summarized recent findings about safety issues of MSCs, in particular their genetic stability in long-termin vitroexpansion, their cryopreservation, banking, and the role of serum in the preparation of MSCs.

scholarly journals Electronic Waste in China, Japan, and Vietnam: A Comparative Analysis of Waste Management Strategies

2018 ◽  
Vol 9 (1) ◽  
pp. 29-58 ◽  
Author(s):  
Eva Ignatuschtschenko
Keyword(s):  
Waste Management ◽  
Best Practice ◽  
Electronic Waste ◽  
Management Strategies ◽  
Management Approach ◽  
Practice Model ◽  
National Characteristics ◽  
Management Approaches

Abstract This paper comparatively analyses the e-waste sector in China, Japan, and Vietnam by examining progress towards the international best practice model of Integrated Sustainable Waste Management (ISWM) within each country. Through three distinct, yet interdependent dimensions of ISWM (stakeholders, waste system elements, and sustainability aspects), similarities and differences between the three East Asian countries are identified. The analysis shows that the e-waste management approaches differ substantially. The Vietnamese e-waste management approach is least consistent with the ISWM framework, while Japan complies the most with the ideals of the model and Chinese progress towards ISWM is mostly located between the two countries. However, a substantial proportion of Japanese e-waste is exported to developing countries in an uncontrolled manner. The analysis further suggests that the state of development and national characteristics have a significant impact on how the three countries approach e-waste management. In particular, the central role of the informal e-waste sectors in China and Vietnam poses a challenge to the establishment of an effective integrated sustainable e-waste management system. In light of the transnational flow of e-waste in the region, only joint actions will lead to long-term solutions to the increasing threat of e-waste to the environment and human health.

Understanding the Use of Long-Term Finance in Developing Countries

2018 ◽  
Author(s):  
María Soledad Martinez Pería ◽  
Sergio L. Schmukler
Keyword(s):  
Developing Countries ◽  
Capital Markets ◽  
Institutional Investors ◽  
Developed Countries ◽  
Financial Intermediaries ◽  
Short Term ◽  
Foreign Investors ◽  
Short And Long Term ◽  
Asset Managers

This chapter reviews recent evidence on the use of long-term finance in developing countries (relative to developed ones) to try to identify where short- and long-term financing occurs, and what role different financial intermediaries and markets play in extending this type of financing. Although banks are the most important providers of credit, they do not seem to offer long-term financing. In fact, loans in developing countries have significantly shorter maturities than those in developed countries. Capital markets have become increasingly sizable since the 1990s and can provide financing at fairly long terms. But just a few large firms use these markets. Only some institutional investors provide funding at long-term maturities. Incentives for asset managers are tilted toward the short term due to constant monitoring. Instead, asset-liability managers have a longer-term horizon, as foreign investors in developing countries do. Governments might help expand long-term financing, although with limited policy tools.

Company Management’s and Auditor’s Reporting on Going Concern: Discussion of the Current International Regulatory Framework

2019 ◽  
Vol 9 (2) ◽  
pp. 335
Author(s):  
Jan Woudenberg ◽  
Lisette Van der Hel - van Dijk ◽  
Robert Kamerling
Keyword(s):  
Value Creation ◽  
Positive Impact ◽  
Theoretical Perspective ◽  
Holistic Approach ◽  
Regulatory Framework ◽  
Going Concern ◽  
Corporate Governance Codes ◽  
International Convergence ◽  
Made In

In this study, we discuss if the current (international) regulatory framework regarding accounting and auditing provides an adequate basis for both company management and the auditor to report (accurately and informatively) on going concern.Overall findings indicate that from a theoretical perspective the changes made in the design of the framework since the last global economic crisis contribute to more accurate and informative reporting on going concern. This starts with an increased focus on substantiated reporting on long-term value creation and continuity in the U.K. and Dutch corporate governance codes. Furthermore, the current Dutch and U.S. accounting standards increasingly pay attention to reporting on going concern. Also several changes in the Dutch, international and (partly) U.S. auditing standards could have a positive impact, such as the requirement to state the responsibilities of both company management and the auditor in each auditor’s report, and the introduction of key audit matters offering the possibility to report on going concern risks and the audit procedures performed.There is, however, still room for improvement. It seems that various standard setters have determined their own route and pace, which may have kept them from implementing more progressive proposals such as a conclusion and a statement on going concern in each auditor’s report. As a result, the exception-based reporting model is still largely retained. Further progress can be made by implementing a so-called holistic approach to ensure that the responsibilities of company management and the auditor are aligned, and by striving for more international convergence.

scholarly journals The Role of Institutional Investors in the Sustainable CEO Compensation Structure

2019 ◽  
Vol 11 (19) ◽  
pp. 5485
Author(s):  
Mo ◽  
Park ◽  
Kim
Keyword(s):  
Institutional Investors ◽  
Pension Plan ◽  
Institutional Ownership ◽  
Chief Executive ◽  
Pension Plans ◽  
Short Term ◽  
Retirement Pension ◽  
Compensation Structure

Chief executive officer (CEO) retirement pension plans are known as sustainable compensation because they induce managers to make more sustainable and long-term-oriented corporate decisions. We focused on the role of institutional investors in awarding CEO pension plans. Long-term and short-term institutional investors are expected to increase and decrease the CEO pension plan, respectively, wherein the former is aimed at persuading the manager to focus more on the firm’s long-term performance and the latter is aimed at making the CEO assume more risk. We empirically tested our hypothesis and found significantly negative (positive) relationship between short-term (long-term) institutional ownership and CEO pension plans, which is consistent with our hypothesis. Our results suggest the institutional ownership horizon’s differing impact on managers’ sustainable compensation structure.

scholarly journals PENGARUH PANDANGAN INVESTASI INVESTOR INSTITUSIONAL TERHADAP KREDIT RATING PERUSAHAAN

2021 ◽  
Vol 10 (2) ◽  
pp. 293-303
Author(s):  
Fenny Marietza ◽  
Indah Oktari Wijayanti
Keyword(s):  
Institutional Investors ◽  
Credit Rating ◽  
Stock Exchange ◽  
Sample Selection ◽  
Institutional Investor ◽  
Purposive Sampling ◽  
Spss Software ◽  
Short Term Investment

Abstrak: Pengaruh Pandangan Investasi Investor Institusional Terhadap Kredit Rating Perusahaan. Penelitian ini bertujuan untuk mengetahui seberapa besar peran investor institusi terhadap kenaikan atau penurunan rating kredit di Indonesia. Objek penelitian ini adalah perusahaan yang terdaftar di Bursa Efek Indonesia dari tahun 2017-2018. Pemilihan sampel dalam penelitian ini menggunakan metode purposive sampling. Berdasarkan hasil penelitian dengan menggunakan bantuan software SPSS dapat diambil kesimpulan sebagai berikut: pandangan investor terhadap kredit rating perusahaan secara signifikan terbukti berpengaruh. Pandangan investasi investor institusional diduga memiliki peran tata kelola untuk menjaga dan mengawasi efek dari asimetri informasi. Investor institusi yang cenderung memiliki pandangan investasi jangka panjang lebih memainkan peran pengawasan dibandingkan dengan investor institusional yang memiliki pandangan investasi jangka pendek sehingga adanya rating kredit mempengaruhi kebijakan penagawasan.Kata Kunci: Pandangan Investasi, Investor Institusional, Kredit Rating PerusahaanAbstract: The Effect of Institutional Investor Investment Views on Company Kredit Rating. This research aims to find out how much the role of institutional investors in the increase or decrease in kredit ratings in Kredit. The object of this research is companies listed on the Kredit Stock Exchange from 2017-2018. The sample selection in this study uses a purposive sampling method. Based on the results of research using SPSS software the following conclusions can be drawn: the investor’s view of the company’s kredit rating is significantly proven to be influential. The view of institutional investor investment is thought to have a governance olet o safeguard and oversee the effects of information asymmetry. Institutional investors who tend to have a long-term investment view play a supervisory role more than institutional investors who have a short-term investment view so that the kredit rating influences supervision policies.Keywords: Institutional Investor, Investment Views, Company Credit Rating

scholarly journals Shareholder Engagement and Firm Value Creating Outcomes in Kenya

2019 ◽  
Vol 5 (1) ◽  
pp. 13-22
Author(s):  
Amos Muhinga Kimunya ◽  
Amos Njuguna ◽  
Francis Wambalamba
Keyword(s):  
Value Creation ◽  
Institutional Investors ◽  
Random Sampling ◽  
Firm Value ◽  
Boards Of Directors ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Listed Companies ◽  
Minority Representation ◽  
Shareholder Engagement

Purpose: The objective of the study was to determine the firm value creating outcomes arising from institutional shareholder engagement in Kenya. Methodology: The study used data from a sample of 117 institutional investors in the Nairobi Securities Exchange, Kenya, selected using stratified simple random sampling technique. Findings: The study established that the shareholder engagement outcome that significantly explains firm value creation is improvement of a firm’s system of governance, which includes boards of directors that have independent, equitable and minority representation. Implications: The study contributes to literature on shareholder engagement from a Kenyan perspective and adds an impetus to investors, management and policymakers to address issues that are impeding shareholder engagement given its effect on governance and value of the firm. The study recommends that firms invest in improvement in governance structures, and policymakers are advised to maintain an updated register of all the institutional investors, including their current contacts, and a Kenya-specific central depository of data on engagement actions and outcomes across listed companies.

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