Shareholder Engagement

This book deals with the topic of shareholder engagement, a term which refers to institutional investors who influence their portfolio companies with the aim of instigating changes that have a value-enhancing effect. It examines the compatibility of this concept with the German corporate governance system and it highlights its characteristics, instruments and perils. One of the study's key areas of focus is short-termism, that is, investors' excessive focus on short-term results at the expense of long-term performance. This book is a response to the 'Revised Shareholders Rights' Directive', which aims to implement shareholder engagement by means of transparency rules. Its author analyses whether investors can be activated through transparency duties and, if not, what other action could be taken to bring the concept to life. The study also discusses how to address the problem of short-termism.