The Problem of ‘Underweight’ Shareholders
The New York Times, 5 August 2014
4 Pages Posted: 12 Aug 2014
Date Written: August 5, 2014
Western models of corporate governance assume that all shareholders want their company’s share price to grow. Today, however, there are "underweight" investors who, perversely, desire some of their stock holdings to drop in value or underperform their peers.
This article discusses the governance implications of "underweighting" in investment management and suggests remedial actions.
Keywords: underweighting, corporate governance, stewardship, investing
JEL Classification: G30, G34
Suggested Citation: Suggested Citation