NABET, NABET 2017 Conference

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Passive Investing: Agency and Ethics Consequences
Bradley C. Barnhorst

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.  Furthermore, what ethical burden do passive investors share with regards to corporate governance or socially responsible investing?  These topics will be explored using stakeholder/shareholder, political science, and ethical frameworks.

Keywords


finance, investing, Ethics, Agency, corporate governance