Corporate Governance and Responsible Investment in Private Equity

Corporate Governance and Responsible Investment in Private Equity PDF

Author: Simon Witney

Publisher: Cambridge University Press

Published: 2021-01-07

Total Pages: 241

ISBN-13: 1108627668

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Private equity-backed companies are ubiquitous and economically significant. Consequently, the corporate governance of these companies matters to all of us, and – not surprisingly – is coming under increasing scrutiny. Simon Witney, a practicing private equity lawyer, positions private equity portfolio companies within existing academic theory and examines the laws that apply to them in the UK. He analyses the actual governance frameworks that are put in place and identifies problems created by the legal rules – as well as the market's solutions to them. This book not only explains why these governance mechanisms are established, but also what they are expected to achieve. Witney suggests that private equity owners have both the incentives and the capability to focus on responsible investment practices. Good governance, he argues, is a critical success factor for the private equity industry.

The Routledge Handbook of Responsible Investment

The Routledge Handbook of Responsible Investment PDF

Author: Tessa Hebb

Publisher: Routledge

Published: 2015-08-11

Total Pages: 764

ISBN-13: 1136249745

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The UN-supported Principles for Responsible Investment initiative has led to around a third of the world’s financial assets being managed with a commitment to invest in a way that considers environmental, social or governance (ESG) criteria. The responsible investment trend has increased dramatically since the global financial crisis, yet understanding of this field remains at an early stage. This handbook provides an atlas of current practice in the field of responsible investment. With a large global team of expert contributors, the book explores the impact of responsible investment on key financial actors ranging from mainstream asset managers to religious organizations. Offering students and researchers a comprehensive introduction to current scholarship and international structures in the expanding discipline of responsible investment, this handbook is vital reading across the fields of finance, economics and accounting.

Private Equity, Corporate Governance and the Dynamics of Capital Market Regulation

Private Equity, Corporate Governance and the Dynamics of Capital Market Regulation PDF

Author: Justin O'Brien

Publisher: World Scientific

Published: 2007-12-03

Total Pages: 424

ISBN-13: 1908979135

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Global capital markets are in a state of flux. Castigated in the past as “Barbarians at the Gate”, private equity providers are once again proclaiming the end of the public corporation. This important book addresses the implications of private equity for the governance of corporations, the capital markets in which they operate and the professionals who provide corporate advisory services. The book evaluates and ranks the precise nature of the risk posed by private equity by situating it within an overarching analysis of the dynamics of financial capitalism. Key issues addressed include: the management of conflicts of interest, fiduciary duties, the role of enforcement, the efficacy of adopting a rules- or principles-based system of regulation, the form and function of compliance, and a detailed examination of how to embed accountability into an integrity system for the financial markets. The book therefore has enormous benefit for industry, regulatory and academic communities alike. Contents:Introduction: The Dynamics of Capital Market Governance (J O'Brien)The Conceptual Underpinnings of Australian Securities Regulation (M Rodgers)Evolving ‘Rules of the Game’ in Corporate Governance Reform (J Hill)Overlapping Fields and Constructed Legalities: The Endogeneity of Law (L B Edelman)The Significance of Relative Autonomy in How Regulation of the Financial Services Sector Evolves (G Gilligan)ASIC v Citigroup: Investment Banks, Conflicts of Interest, and Chinese Walls (P F Hanrahan)Enforcement of Capital Markets Regulation: The United Kingdom and Its International Markets (I MacNeil)Why Auditors Don't Find Fraud (N M Hodson)Compliance, Ethics and Responsibility: Emergent Governance Strategies in the US and UK (D McBarnet)Professional Norms (D Cocking)Sarbanes-Oxley and the Search for Accountable Corporate Governance (M J Dubnick)Charting an Icarian Flightpath: The Implications of the Qantas Deal Collapse (J O'Brien)Institutions, Integrity Systems and Market Actors (S Miller) Readership: Postgraduate law and business students; also suitable for general informed market (e.g. investment bankers, compliance professionals, providers of corporate advisory services including lawyers, tax advisors and auditors). Keywords:Private Equity;Conflicts of Interest;Financial Regulation;Enforcement;Investment Banks;Fiduciary DutiesKey Features:Presents an integrated series of recommendations on how compliance (and wider regulatory) frameworks should be recalibrated in order to take into account the unique challenges posed by both private equity and demands to reduce regulatory burden to stem its growthBased on empirical research in three major capital market jurisdictionsContributors include some of the most influential corporate and securities lawyers, ethicists, regulatory specialists, socio-legal scholars, practitioners and policymakers

Responsible Investment in Times of Turmoil

Responsible Investment in Times of Turmoil PDF

Author: Wim Vandekerckhove

Publisher: Springer Science & Business Media

Published: 2012-01-31

Total Pages: 253

ISBN-13: 9400740700

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The SRI phenomenon is said to be entering the mainstream of financial intermediation. From a fairly marginal practice promoted or campaigned for by NGO’s and at odds with financial practice and orthodoxy it grew into well formulated policy adopted by a wide range of investors. Academic literature on SRI has also boomed on the assumption that mainstreaming is taking place. However, little thinking has been carried out on questions specifically arising from this alleged ‘mainstreaming’. This book, addressed to those with a scholarly or practitioner’s interest in SRI, starts filling this neglected dimension. Today, one cannot ignore the difficulties of main stream financing. The financial spheres are trembling globally in one of the worst crises since the 1930’s. As a response to the crisis, the intermediation of ‘financial responsibility’ will undoubtedly be the subject of new regulation and scrutinizing. This book looks into what these turbulences will imply for SRI. In view of these circumstances, one might or even should, ask oneself whether the phenomenon was not an empty fad during the exuberant high of financial euphoria that came abruptly to an end with current financial crises. To put it rather sec: are financial intermediaries that promote ‘sustainability’ credible, while it is obvious that some developments in financial intermediation -predictably, as some say- were unsustainable? Is this an opportunity for enhancing SRI because of the strength and superiority it has developed or will it disappear due to a return to financial myopia? This book is the first to question the future of SRI in such a radical way.

ESG and Responsible Institutional Investing Around the World: A Critical Review

ESG and Responsible Institutional Investing Around the World: A Critical Review PDF

Author: Pedro Matos

Publisher: CFA Institute Research Foundation

Published: 2020-05-29

Total Pages: 80

ISBN-13: 1944960988

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This survey examines the vibrant academic literature on environmental, social, and governance (ESG) investing. While there is no consensus on the exact list of ESG issues, responsible investors increasingly assess stocks in their portfolios based on nonfinancial data on environmental impact (e.g., carbon emissions), social impact (e.g., employee satisfaction), and governance attributes (e.g., board structure). The objective is to reduce exposure to investments that pose greater ESG risks or to influence companies to become more sustainable. One active area of research at present involves assessing portfolio risk exposure to climate change. This literature review focuses on institutional investors, which have grown in importance such that they have now become the largest holders of shares in public companies globally. Historically, institutional investors tended to concentrate their ESG efforts mostly on corporate governance (the “G” in ESG). These efforts included seeking to eliminate provisions that restrict shareholder rights and enhance managerial power, such as staggered boards, supermajority rules, golden parachutes, and poison pills. Highlights from this section: · There is no consensus on the exact list of ESG issues and their materiality. · The ESG issue that gets the most attention from institutional investors is climate change, in particular their portfolio companies’ exposure to carbon risk and “stranded assets.” · Investors should be positioning themselves for increased regulation, with the regulatory agenda being more ambitious in the European Union than in the United States. Readers might come away from this survey skeptical about the potential for ESG investing to affect positive change. I prefer to characterize the current state of the literature as having a “healthy dose of skepticism,” with much more remaining to be explored. Here, I hope the reader comes away with a call to action. For the industry practitioner, I believe that the investment industry should strive to achieve positive societal goals. CFA Institute provides an exemplary case in its Future of Finance series (www.cfainstitute.org/research/future-finance). For the academic community, I suggest we ramp up research aimed at tackling some of the open questions around the pressing societal goals of ESG investing. I am optimistic that practitioners and academics will identify meaningful ways to better harness the power of global financial markets for addressing the pressing ESG issues facing our society.

Corporate Governance and Investment Management

Corporate Governance and Investment Management PDF

Author: Roger M. Barker

Publisher: Edward Elgar Publishing

Published: 2017-12-29

Total Pages: 318

ISBN-13: 178471352X

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Shareholder engagement with publicly listed companies is often seen as a key means to monitor corporate malpractices. In this book, the authors examine the corporate governance roles of key institutional investors in UK corporate equity, including pension funds, insurance companies, collective investment funds, hedge and private equity funds and sovereign wealth funds. They argue that institutions’ corporate governance roles are an instrument ultimately shaped by private interests and market forces, as well as law and regulatory obligations, and that policy-makers should not readily make assumptions regarding their effectiveness, or their alignment with public interest or social good.

Sustainable and Responsible Investment in Developing Markets

Sustainable and Responsible Investment in Developing Markets PDF

Author: Joshua Y. Abor

Publisher: Edward Elgar Publishing

Published: 2023-05-09

Total Pages: 435

ISBN-13: 1803927062

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Covering pertinent areas of sustainable and responsible investment (SRI) this forward-looking book examines SRI in developing markets including its evolution, principles and concepts. It explores the drivers and challenges in developing economies and analyses the theoretical underpinnings to critical issues pertaining to SRI.

Investor Engagement

Investor Engagement PDF

Author: Roderick Martin

Publisher: OUP Oxford

Published: 2007-07-05

Total Pages: 238

ISBN-13: 0191607053

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The growth of shareholder value has been a major change in Western economies since the 1980s. This growth has reignited debates concerning relations between investors and managers. This book argues that investors are more than passive providers of finance, on whose behalf managers seek to maximize shareholder returns. Instead, many investors directly influence management practice, through investor engagement. The book examines the role of institutional investors and private equity firms, two types of investors with overlapping but different reasons for engagement. Questions addressed include: What are the incentives, and disincentives, for investment engagement? How is investor engagement organized? What areas of management practice are of particular concern to investors? The discussion shows in detail how private equity firms play a major role in developing new companies, beyond the provision of finance, especially in the IT, biotechnology, and pharmaceutical sectors. The discussion is primarily based on British and US research. The debate has wider international relevance, because there are strong pressures for establishing shareholder value as the international 'norm' for systems of corporate governance. Following a detailed discussion of Germany, the authors conclude that there is no inevitable trend to shareholder value: shareholder value depends upon complementary institutional arrangements in national business systems, which are far from universal. The book concludes with a critical analysis of the justifications for shareholder value and investor engagement, highlighting the weaknesses of both efficiency and equity justifications.

Private Equity

Private Equity PDF

Author: Harry Cendrowski

Publisher: John Wiley & Sons

Published: 2011-01-25

Total Pages: 454

ISBN-13: 1118045254

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Praise for Private Equity "Private Equity: History, Governance, and Operations is an invaluable guide to understanding the world of private equity investing. Harry Cendrowski and his colleagues have drawn on their extensive experience and expertise to produce a book that is remarkably comprehensive and authoritative." —Robert Larson, Chairman, Lazard Real Estate Partners LLC and Larson Realty Group Managing Director, Lazard Alternative Investments "Private Equity: History, Governance, and Operations is an essential text for any business/finance professional's library. Applicable to both seasoned private equity gurus and students of the industry, its in-depth analysis of 'Best Practices' is well researched and clearly written." —William Campbell, Managing Director, W.Y. Campbell & Company "This is an interesting and very well-written book. It not only clearly describes the history and techniques of private equity investing, it also provides a thorough examination of the rarely appreciated relationships among internal control design and operation, corporate governance and sound investment decision-making and management. It is an important contribution to the literature of finance." —Barry Epstein, PhD, CPA, Partner, Russell Novak & Company, LLP, and author of Wiley GAAP 2008, The Handbook of Accounting and Auditing, and Wiley IFRS 2008 "Harry Cendrowski really hits a homerun with his newest book about the private equity (PE) industry. A definitive, authoritative text on the subject, it answered all my questions, plus some, and gave me a complete frame of reference where I now feel well informed on PE. I would recommend this book to anyone connected to the PE industry, business advisors, academics, and business owners." —Parnell Black, MBA, CPA, CVA, Chief Executive Officer, National Association of Certified Valuation Analysts (NACVA) "The timing could not be better to learn more about the current best practices and governance in the world of private equity. What was once an exclusive asset class reserved for the largest, most sophisticated investors has now become a mainstream alternative investment option for investors of all sizes. Still, many investors do not fully understand how the business works. Private Equity: History, Governance, and Operations endows its readers with an A-to-Z education on this emerging asset class, irrespective of their previous experiences." —Maribeth S. Rahe, President and Chief Executive Officer, Fort Washington Investment Advisors, Inc. & Fort Washington Capital Partners "As a private equity practitioner in the financial services space, I found this book to be a comprehensive-and comprehendible-resource covering all relevant aspects of the business of private equity. This book provides valuable 'how-to's' for improving the likelihood of having successful portfolio companies, with successful exits. Furthermore, both veteran and prospective PE investors now have a resource available to help them screen PE opportunities that best fit with their risk and return objectives." —Scott B. McCallum, Principal, Resource Financial Institutions Group, Inc. "For years, private equity has been a misunderstood asset class. Harry Cendrowski's book defines private equity in clear, concise terms. Anyone in the financial world will benefit from the insights, guidelines, and experiences detailed in Private Equity: History, Governance, and Operations." —Bob Clone, Senior Portfolio Manager, Alternative Investments Division, Michigan Department of Treasury

Financing Sustainable Development

Financing Sustainable Development PDF

Author: Magdalena Ziolo

Publisher: Springer

Published: 2019-07-27

Total Pages: 392

ISBN-13: 3030165221

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This book is among the first to address the issue of assessing the efficiency of sustainable development financing from a theoretical and methodical point of view. The innovative nature of research is expressed through the study of new phenomena in finance including sustainable financial systems, sustainable finance, ESG risk and individual and institutional motivations of financial managers in the sustainability concept. The book aims to draw attention to the significant gap in the existing research.The concept of Sustainable Development, if placed in an economic category, requires a lot of attention, but seeing the cognitive category from the perspective of the discipline of finance, the latter is unsatisfactory, with questions remaining unanswered. At the same time, the rank problem, its strategic dimension and the amount of financial resources allocated and disbursed for the purposes of focusing around sustainable development, identification of financial phenomena accompanying this category is seen as a priority. Most measures financing Sustainable Development and measures of public spending efficiency are measures subject to rigor and rules due to their specificity, which means actions aimed at increasing efficiency are treated as a priority. This book will be of interest to leading representatives of academia, practitioners, executives, officials, and graduate students in economics, finance, management, statistics, law and political sciences.