NBIM funds three research projects on corporate governance effects

On the 11/18/20 at 7:52AM


Tuba Raqshan

The three research grants worth $500,000 totally would go into studying the effects of increasing institutional ownership on companies.

The Norges Bank Investment Management, which runs Norway’s €1trn sovereign wealth fund, has awarded the European Corporate Governance Institution (ECGI), the University of Oxford and the Ecole Polytechnique Fédérale de Lausanne (EPFL) grants worth a total of $500,000.

During the last decades, ownership in companies have become more fragmented as institutional investors, like the sovereign wealth fund, have become significant shareholders owning a slice of thousands of companies across the globe, said Carine Smith Ihenacho, chief governance and compliance officer, NBIM. She added that the research promises to shed more light on changes in ownership, their impact on companies and how institutional investors can influence corporate governance at scale.

The European Corporate Governance Institution will collaborate with the University of Oxford, the Review of Corporate Finance Studies (RCFS) and the Review of Financial Studies (RFS) to examine the unprecedented shock of the Covid-19 pandemic on global corporations by hosting an online workshop on 2021 and a physical conference in 2022 on ‘Corporations and Covid-19’. The forum would allow researchers to explore the immediate impact of Covid-19 on companies’ governance and decision-making and performance.

The University of Oxford has been awarded a three-year research grant to analyse how changes in ownership, compensation structure and communication from owners affect management behaviour. It will also run laboratory experiments to assess which mechanisms are casually related to changes in managerial choices.

The École Polytechnique Fédérale de Lausanne will undertake a three years research project on institutional investor preferences and their impact on portfolio companies with respect to environmental, social, and governance issues. The idea is to create a new dataset of institutional investors’ guidelines on proxy voting.