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In What Contexts Institutional Investors Can Be Catalyst? The Moderating Role of Corporate Governance
The paper examines the role of institutional investors in improving firm-level financial competitiveness by enhancing corporate governance. We employ multiple case study methods to analyze the role of institutional investors in improving firm competitiveness. The study finds traces of institutional...
Autores principales: | , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Springer Nature Singapore
2023
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9878481/ http://dx.doi.org/10.1007/s42943-022-00069-5 |
_version_ | 1784878492649783296 |
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author | Wani, Tahir Ahmad Haldar, Arunima Ganie, Irfan Rashid |
author_facet | Wani, Tahir Ahmad Haldar, Arunima Ganie, Irfan Rashid |
author_sort | Wani, Tahir Ahmad |
collection | PubMed |
description | The paper examines the role of institutional investors in improving firm-level financial competitiveness by enhancing corporate governance. We employ multiple case study methods to analyze the role of institutional investors in improving firm competitiveness. The study finds traces of institutional activism across different industries and their role in major corporate governance issues. Thus, the study suggests that institutional investors help in improving the corporate governance landscape of the firm, which in turn can impact the firm financial competitiveness. In India, the indicators of the principal–principal dilemma can be mitigated by implementing governance mechanisms such as empowering minority shareholders and increasing institutional investor engagement. Thus, the findings of this study propose changes in the legal framework that would empower institutional investors, primarily by reducing the expropriation of minority shareholders by majority shareholders (concentrated promoters), who could otherwise skew voting outcomes in favor of minority shareholders. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s42943-022-00069-5. |
format | Online Article Text |
id | pubmed-9878481 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2023 |
publisher | Springer Nature Singapore |
record_format | MEDLINE/PubMed |
spelling | pubmed-98784812023-01-26 In What Contexts Institutional Investors Can Be Catalyst? The Moderating Role of Corporate Governance Wani, Tahir Ahmad Haldar, Arunima Ganie, Irfan Rashid JGBC Original Research The paper examines the role of institutional investors in improving firm-level financial competitiveness by enhancing corporate governance. We employ multiple case study methods to analyze the role of institutional investors in improving firm competitiveness. The study finds traces of institutional activism across different industries and their role in major corporate governance issues. Thus, the study suggests that institutional investors help in improving the corporate governance landscape of the firm, which in turn can impact the firm financial competitiveness. In India, the indicators of the principal–principal dilemma can be mitigated by implementing governance mechanisms such as empowering minority shareholders and increasing institutional investor engagement. Thus, the findings of this study propose changes in the legal framework that would empower institutional investors, primarily by reducing the expropriation of minority shareholders by majority shareholders (concentrated promoters), who could otherwise skew voting outcomes in favor of minority shareholders. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s42943-022-00069-5. Springer Nature Singapore 2023-01-26 /pmc/articles/PMC9878481/ http://dx.doi.org/10.1007/s42943-022-00069-5 Text en © The Author(s) under exclusive licence to Global Institute of Flexible Systems Management 2023, Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law. This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic. |
spellingShingle | Original Research Wani, Tahir Ahmad Haldar, Arunima Ganie, Irfan Rashid In What Contexts Institutional Investors Can Be Catalyst? The Moderating Role of Corporate Governance |
title | In What Contexts Institutional Investors Can Be Catalyst? The Moderating Role of Corporate Governance |
title_full | In What Contexts Institutional Investors Can Be Catalyst? The Moderating Role of Corporate Governance |
title_fullStr | In What Contexts Institutional Investors Can Be Catalyst? The Moderating Role of Corporate Governance |
title_full_unstemmed | In What Contexts Institutional Investors Can Be Catalyst? The Moderating Role of Corporate Governance |
title_short | In What Contexts Institutional Investors Can Be Catalyst? The Moderating Role of Corporate Governance |
title_sort | in what contexts institutional investors can be catalyst? the moderating role of corporate governance |
topic | Original Research |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9878481/ http://dx.doi.org/10.1007/s42943-022-00069-5 |
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