Institutional Investors

In: Business and Management

Submitted By shenxian
Words 3766
Pages 16
Executive Summary
The report captures the role of institutional investors in corporate governance. The relationship that exists between an institutional investor and a public company forms the experimental setting of the report. The government exists as the regulating authority for the different players in the market, however, the players at times deviate from the blueprint set out by the regulating authority because of the changing circumstances. (Drucker 2011, p. 107). The report analyses the different postures that an institutional investor assumes, depending on the situation at hand. The report also examines the reasons behind activist investing and establishes that an institutional investor is quite ambitious in her quest. The reason behind this is the high expectations of the contributors who have entrusted the institution with their funds. The report goes further to apply its own finding in analyzing the relationship between Hermes and Total and arrives at the conclusion that the former should go ahead in pressuring the latter to offer a level of accountability that reflects their expectations. In a nutshell, the report proposes that an institutional investor should be actively involved in the strategy process of the company that they invest in (Drucker 2011, p. 107).

Table of Contents Executive Summary 1 Summary of recommendations 3 Introduction and brief history 4 Strategic audit 5 Consultants report: Equipment 7 Management and planning 7 Consultant's Report: Services 9 Managing Finance 9 Issues and alternatives for the future 10 Information 11 Reference list 12

Summary of recommendations

Institutional investors are organizations which accumulate large amounts of finances and invest them in real property, securities and other investment opportunities like assets. They are non-bank organizations that deal…...

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