Brodsky Trustee Professor at Northeastern University in Global Business and Corporate Governance — NACD member — Keynote Speaker and Corporate Governance/ESG Advisor — Director and Board Chair
Excited to share that our study co-authored with Kurt Desender and Mónica L. titled "From #Universal #Owners to Owners of the Universe? How the #BigThree Are Reshaping #CorporateGovernance” has been accepted at @Corporate Governance: An International Review (CGIR). You can access it in the link below. We thank our Associate Editor and two anonymous reviewers. https://lnkd.in/e73Xy-xQ 📢 In the corporate governance landscape, the influence of the largest asset management firms in the world, the #BigThree (BlackRock, Vanguard, and State Street Global Advisors) has become a focus of scholarly and public debate. The most recent development is Vanguard’s warning to investors that U.S. regulators may restrict the size of stakes it can hold in companies. 📰 We examine whether the influence of the Big Three benefits or harms corporate practices and present a systematic review and discussion of the literature on their influence. 🎥 Our review of recently published articles in top journals suggests that the net effects of the Big Three on firm #corporategovernance (CG)are mixed and even unclear and that any effects are contingent on the specific #corporategovernance dimension or mechanism. We focus on how the #BigThree shape four key CG dimensions: #board dynamics, #financial #reporting and #disclosure, #CSR, and external disciplinary mechanisms, such as product-market competition and #shareholderactivism. Rather than making a universal prediction regarding the Big Three’s effects on all CG dimensions, the positive effects may be more pronounced in some dimensions, while opposite (or mixed) effects may appear in others. The mixed evidence calls for further research to shed light on the specific contexts and conditions under which their impact is positive or negative. 💡 We provide a conceptual framework that organizes different avenues for future research across four main dimensions: a) institutional context; b) underlying channels; c) other CG agents; and d) other CG dimensions. 🤸♀️ In addition to more #empirical research, additional #qualitative research may be beneficial to better capture the biases, influences, and power relations emanating from the Big Three toward various #stakeholders. International Corporate Governance Society; European Corporate Governance Institute (ECGI); International Corporate Governance Network; D'Amore-McKim School of Business at Northeastern University,
Catchy title and useful insights. Congratulations Ruth V. Aguilera, Kurt Desender, and Mónica for the publication!
Many congratulations Ruth, Kurt and Mónica!!!
University of St.Gallen
2moVery intriguing and timely article on the growing Big Three influences: curious to learn whether empirical research also explores the potential roles/influences of proxy advisors like ISS.