Corporate Governance — The Viewpoint of a Large Institutional Investor

Abstract

The purpose of the paper is to show that corporate governance is an increasingly important opportunity for professional investors to create value in the long run. It means pursuing a well balanced relationship between the parties that are decisive for the company’s strategy and performance: the management, the supervisory board and the shareholders as owners of the company.

It is emphasized that professional managers are not the better entrepreneurs; but to fulfill their duties to their investors, they need to exploit every opportunity to create extra value. To insist on best practice in corporate governance is therefore a major opportunity.