Corporate Governance Flashcards
Principal agent of conflict between Managers and Shareholders
Risk tolerance
Managers have their jobs on game
What happens with the director in a decision of Polices or related- party wich will be voted?
He will be excluded for have the interest about the subject
How many majority votes does a company needs to elect a director?
One
Ordinary process
Timing of ESG on investment analysis compare to Corporate Governance
ESG and social factors has been slower to take comparing to governance
Stranded Assets are a concern among investors of what type (sector) of companies?
Energy companies
I.e carbon intensive assets risk of no longer being viable because of changes in regulation
Material Environmental effects are costly in terms of: (5)
- Regulatory
- Litigation
- Clean up
- Reputational
- Resource management
What is the UMBRELLA TERM to describe ESG investments strategies?
RESPONSIBLE INVESTMENTS
What are the SOCIAL (HUMAN) factors os ESG pertain to MANEGEMENT (2)
- Human Capital of a business
- Data privacy and security
Negative screening excludes…
Industries and companies that do not meet investors ESG criteria
What are the main importance of Corporate Governance (2)
- Arrangement of checks, balances and incentives that a companie need to minimize
- Manage conflicts about external and internal shareholders
Responsibility of Board of Directors
Risk management
Wich system of law offers better protection for shareholders
Common law system
Primary motivation of a activist shareholders ( não é ativista da Paulista)
Improve shareholder value
Stakeholder theory incorporates interests of: (3)
- Customers
- Suppliers
- Employees
What is a “Impact investment?”
Seeks to achieve target social or
Environmental
