Book contents
- Frontmatter
- Contents
- Figures
- Tables
- Contributors
- Acknowledgements
- 1 Introduction: rethinking corporate governance – lessons from the global financial crisis
- Part I The failure of the market approach to corporate governance
- Part II Ownership, internal control and risk management: the roles of institutional shareholders and boards
- Part III Post-crisis corporate governance: the search for new directions
- Index
Part II - Ownership, internal control and risk management: the roles of institutional shareholders and boards
Published online by Cambridge University Press: 05 August 2011
- Frontmatter
- Contents
- Figures
- Tables
- Contributors
- Acknowledgements
- 1 Introduction: rethinking corporate governance – lessons from the global financial crisis
- Part I The failure of the market approach to corporate governance
- Part II Ownership, internal control and risk management: the roles of institutional shareholders and boards
- Part III Post-crisis corporate governance: the search for new directions
- Index
Summary
The contributions in this section concentrate on examining the failure of the internal governance system in the financial crisis and exploring how we may address the problems with the role of institutional shareholders, board effectiveness, internal control and risk management. Robert A. G. Monks starts the section with a focus on the complex and conflicting role of institutional shareholders, which has caused the systemic dysfunction of shareholders' rights and responsibilities to monitor the corporation. While there is no genuine commitment to an ownership-based governance system at present, he suggests two main policy initiatives to tackle this issue: the first is enabling effective shareholder engagement in corporate governance through explicit legislation and commitment to enforcement by all branches of government, and the second is encouraging shareholder activism by arrangement for financing ‘activism’ either as an appropriate corporate expense or as a designated portion of the investment management fees.
- Type
- Chapter
- Information
- Corporate Governance and the Global Financial CrisisInternational Perspectives, pp. 129 - 133Publisher: Cambridge University PressPrint publication year: 2011