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Passive Investing: Agency and Ethics Consequences
Last modified: 2018-01-10
Abstract
As passive investing has dramatically increased in recent years (estimates are that in 2016 $700 billion shifted from actively managed assets to passive), there arise many questions about the agency effects of this shift, with respect to corporate governance. Â Furthermore, what ethical burden do passive investors share with regards to corporate governance or socially responsible investing? Â These topics will be explored using stakeholder/shareholder, political science, and ethical frameworks.
Keywords
finance, investing, Ethics, Agency, corporate governance