Harnessing the Collective Power of Retail Investors

A Research Agenda for Corporate Law (Christopher M. Bruner & Marc Moore, eds.) (Edward Elgar Publishing) (2023), https://doi.org/10.4337/9781800880443.00020

16 Pages Posted: 7 Jul 2022 Last revised: 5 Dec 2023

See all articles by Sergio Alberto Gramitto Ricci

Sergio Alberto Gramitto Ricci

NYU School of Law; University of Missouri at Kansas City - School of Law

Christina M. Sautter

Southern Methodist University - Dedman School of Law

Date Written: June 27, 2022

Abstract

This book chapter, forthcoming in A Research Agenda for Corporate Law (Christopher M. Bruner & Marc Moore, eds.) (Edward Elgar Publishing), suggests a path forward to harness the collective power of new generations of retail investors. Since 2020, new retail investors have been flooding the securities markets, opening a record-breaking number of new brokerage accounts. The overwhelming majority of these new retail investors are Millennials and GenZ’ers. Due to their increasing fiscal power as well as their generational characteristics and affinities, these new generations of retail investors can shift paradigms in corporate governance and in the relation between business corporations and society. This chapter sheds light on the benefits that harnessing the collective power of retail investors can bring about, with an emphasis on easing access to corporate governance for all shareholders, increasing diversity in corporate
governance, bridging the gap between business corporations and society, and nurturing the relation between consumer-facing corporations and new generations of ‘investomers’. This chapter also discusses how corporate governance infrastructure would enhance the engagement of retail investors and allow society and corporations to harness the benefits of the collective power of retail investors.

Keywords: corporate governance, investing, wireless investors, Millennials, GenZ, society, corporate purpose, investomers, stakeholders, collective power

JEL Classification: K2, K20, K22

Suggested Citation

Gramitto Ricci, Sergio Alberto and Sautter, Christina M., Harnessing the Collective Power of Retail Investors (June 27, 2022). A Research Agenda for Corporate Law (Christopher M. Bruner & Marc Moore, eds.) (Edward Elgar Publishing) (2023), https://doi.org/10.4337/9781800880443.00020, Available at SSRN: https://ssrn.com/abstract=4147388

Sergio Alberto Gramitto Ricci

NYU School of Law ( email )

4153280756 (Phone)

University of Missouri at Kansas City - School of Law ( email )

5100 Rockhill Road
Kansas City, MO 64110-2499
United States

Christina M. Sautter (Contact Author)

Southern Methodist University - Dedman School of Law ( email )

P.O. Box 750116
Dallas, TX 75275
United States

HOME PAGE: http://www.smu.edu/Law/Faculty/Profiles/Sautter-Christina

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