Theoretical and Applied Economics
No. 10 / 2006 (505)
The Institutional Investors and Corporate Governance
Academia de Studii Economice Bucuresti
Abstract. 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.
Contents
Empirical Approaches of the Public-Private Partnership in the Services of Public Utility
Informational Asymmetry, Sustainable Growth, Exploitation and Obligation Risks
Regulation Strategy in Natural Gas Sector. The Romanian Case
Indirect Instruments of Prudential Supervision
About some Entropy Aspects of Dissipative Systems
Aspects about Statistical Inference
Determinants of Business Cycle Convergence in Euro Area. The Romanian Case
The Institutional Investors and Corporate Governance
Proposal of Controlling Implementation in a Romanian Company
Endogenous Growth Paradigm. Implications for Economic Policy and Theory
Industrial Policy Approaches from Theory to Practice in European Union
Environmental Management Accounting (EMA): Reflection of Environmental Factors in the Accounting Processes through the Identification of the Environmental Costs Attached to Products, Processes and Services
Using the Agent-Based Modeling in Economic Field
Escape from the Alternative