Corporate Governance in Action

4Market Actors

Jaan Grünberg and Ingemund Hägg

Introduction

In recent decades, the amount of capital allocated to cross-border equity investments increased dramatically until the 2008 financial crisis. Then it dropped, but a few years later started to increase again (McKinsey & Company 2011). Globalization of ownership has presented investors with a number of challenges. In response to the market, they have to find proper solutions in their relation to the field of governance. As argued in Chapter 2 (see Table 2.1 and the comments around it), we should expect to find mimetic behavior in response to market signals.

The underlying topic of this chapter is thus the classic governance relation between investors and corporations and the changes ...