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HOW TO OVERCOME SHAREHOLDER APATHY IN CORPORATE GOVERNANCE – THE ROLE OF INVESTOR ASSOCIATIONS IN GERMANY
Author(s) -
STRÄTLING Rebecca
Publication year - 2012
Publication title -
annals of public and cooperative economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.526
H-Index - 37
eISSN - 1467-8292
pISSN - 1370-4788
DOI - 10.1111/j.1467-8292.2012.00458.x
Subject(s) - institutional investor , shareholder , corporate governance , business , german , apathy , accountability , accounting , financial system , market economy , finance , economics , political science , law , cognition , archaeology , neuroscience , biology , history
Investor apathy by private retail investors and highly diversified institutional investors is often blamed for poor managerial accountability and control of majority investors. Attempts to encourage shareholder activism tend to focus on large institutional investors and ignore retail investors. However, in Germany associations of private retail investors play an increasingly important role in organizing collective shareholder action and defining minority shareholder interests. The German example highlights a possible alternative to the US and UK model of shareholder activism, which is dominated by institutional investors.