The Deconstruction of Equity

Activist Shareholders, Decoupled Risk, and Corporate Governance

Nonfiction, Reference & Language, Law, Corporate, Business & Finance
Cover of the book The Deconstruction of Equity by Wolf-Georg Ringe, OUP Oxford
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Wolf-Georg Ringe ISBN: 9780191034534
Publisher: OUP Oxford Publication: September 15, 2016
Imprint: OUP Oxford Language: English
Author: Wolf-Georg Ringe
ISBN: 9780191034534
Publisher: OUP Oxford
Publication: September 15, 2016
Imprint: OUP Oxford
Language: English

New investment techniques and new types of shareholder activists are shaking up the traditional ways of equity investment that informs much of our present-day corporate law and governance. Savvy investors such as hedge funds are using financial derivatives, securities lending transactions, and related concepts to decouple the financial risk from shares. This leads to a distortion of incentives and has potentially severe consequences for the functioning of corporate governance and of capital markets overall. Taking stock of the different decoupling strategies that have become known over the past several years, this book then provides an evaluation of each from a legal and an economic perspective. Based on several analytical frameworks, the author identifies the elements of equity deconstruction and demonstrates the consequences for shareholders, outside investors, and capital markets. On this basis, the book makes the case for regulatory intervention, based on three different pillars and comprising disclosure, voting right suspension, and ex-post litigation. The book concludes by developing a concrete, comprehensive proposal on how to address the regulatory problem. Overall, this book contributes to the debate about activist investment and the role of shareholders in corporate governance. At the same time it raises a number of important considerations about the role of equity investment more generally.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

New investment techniques and new types of shareholder activists are shaking up the traditional ways of equity investment that informs much of our present-day corporate law and governance. Savvy investors such as hedge funds are using financial derivatives, securities lending transactions, and related concepts to decouple the financial risk from shares. This leads to a distortion of incentives and has potentially severe consequences for the functioning of corporate governance and of capital markets overall. Taking stock of the different decoupling strategies that have become known over the past several years, this book then provides an evaluation of each from a legal and an economic perspective. Based on several analytical frameworks, the author identifies the elements of equity deconstruction and demonstrates the consequences for shareholders, outside investors, and capital markets. On this basis, the book makes the case for regulatory intervention, based on three different pillars and comprising disclosure, voting right suspension, and ex-post litigation. The book concludes by developing a concrete, comprehensive proposal on how to address the regulatory problem. Overall, this book contributes to the debate about activist investment and the role of shareholders in corporate governance. At the same time it raises a number of important considerations about the role of equity investment more generally.

More books from OUP Oxford

Cover of the book The Preventive Turn in Criminal Law by Wolf-Georg Ringe
Cover of the book Parmenides and Presocratic Philosophy by Wolf-Georg Ringe
Cover of the book Carnivore Ecology and Conservation by Wolf-Georg Ringe
Cover of the book Locke: A Very Short Introduction by Wolf-Georg Ringe
Cover of the book Theories of Performance by Wolf-Georg Ringe
Cover of the book The Handbook of International Humanitarian Law by Wolf-Georg Ringe
Cover of the book Cooperative Strategy by Wolf-Georg Ringe
Cover of the book Churchill's Children by Wolf-Georg Ringe
Cover of the book International Law as Social Construct by Wolf-Georg Ringe
Cover of the book Practical Management of Complex Cancer Pain by Wolf-Georg Ringe
Cover of the book The Mirror of the World: Subjects, Consciousness, and Self-Consciousness by Wolf-Georg Ringe
Cover of the book Visual Experience by Wolf-Georg Ringe
Cover of the book The Oxford Handbook of the Law of the Sea by Wolf-Georg Ringe
Cover of the book William Hazlitt by Wolf-Georg Ringe
Cover of the book Oxford Textbook of Axial Spondyloarthritis by Wolf-Georg Ringe
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy