This article appears as Chapter One in Corporate Governance of Non-Listed Companies. The chapter evaluates the role of corporate law in formulating effective solutions to the core agency problems that arise in non-listed companies. We show how a range of legal strategies, which were originally...

This article examines the relation between executive cash compensation and corporate governance in Europe. Most research performed on the pay-for-performance relation has been conducted in the United States and the United Kingdom, because the widely held nature of shareholding makes the...

Over the past two decades, activist investors have begun to play an increasingly important role in corporate governance around the world. This book analyses the impact of activists on the companies that they invest, the effects on shareholders and on activists funds themselves.

We survey institutional investors to better understand their role in the corporate governance of firms. Consistent with a number of theories we document widespread behind-the-scenes intervention as well as governance-motivated exit. Both governance mechanisms are viewed as complementary devices,...

The recent global turbulence in the credit markets had a severe impact on all aspects of the private equity industry. In response, lawmakers introduced legislation that subjects fund managers to a registration requirement and provisions targeted at improving fund monitoring and accountability....

A significant debate rages within the EU about whether to give firms the choice to opt in or out of corporate law provisions. Both sides agree that more flexibility and adaptability of legal rules to business needs is crucial. Nevertheless, and not surprisingly, many still view EU mandatory...

The increase in institutional ownership of recent decades has been accompanied by an enhanced role played by institutions in monitoring companies' corporate governance behaviour. Activist hedge funds and private equity firms have achieved a degree of success in actively shaping the business...

Direct investments are the preferred vehicle for large institutional investors to have control over their portfolio investments. We study the deal structure of direct investments by sovereign wealth funds (SWFs) in private equity transactions. We find that SWFs shift from investing in private...

There is arguably a balance between exploration and exploitation within a commercial organization which leads to sustainable growth and value creation. Exploratory activities are associated with search, innovation, risk-taking and experimentation. Activities, such as selection, implementation...