Corporate Governance Gaming
42 Pages Posted: 8 Apr 2021 Last revised: 3 May 2021
Date Written: March 29, 2021
The GameStop saga and meme stock frenzy have shown the pathway to the most disruptive revolution in corporate governance of the millennium. New generations of retail investors use technologies, online forums, and gaming dynamics to coordinate their actions and obtain unprecedented results. Signals indicate that these investors, whom we can dub wireless investors, are currently expanding their actions to corporate governance. Wireless investors’ generational characteristics suggest that they will use corporate governance to pursue social and environmental causes. Their engagement with corporate governance has the potential to spark a social movement. The movement would be based on disintermediation of investments and aimed at bringing business corporations to serve their original partly-private-partly-public purpose. This article discusses premises, architecture, and characteristics of the movement that would cause business corporations to re-marry their partly-private-partly-public purpose. If such a movement proves successful, the paradigm shift that finally makes corporations serve the welfare of a broader range of stakeholders would happen at the hands of shareholders.
Keywords: corporate governance, ESG, corporate purpose, retail investors, institutional investors, gaming, WallStreetBets, social movement, diffusion, stakeholders
JEL Classification: K2, K20, K22
Suggested Citation: Suggested Citation