Topic Results: Stakeholders

February 3, 2016

Quebec nationalists enraged by $3.2B sale of Rona ‘jewel’ to U.S.-based Lowe’s

MONTREAL — News coverage of Rona Inc. in recent years has described the Quebec-based hardware chain as “embattled,” “under-performing,” “struggling” and “slumping.” […] Yvan Allaire, president of the Montreal-based Institute for Governance, considers himself a nationalist when it comes to protecting key industries. For example he opposed Rio Tinto’s 2007 takeover of Alcan, which saw […]

November 9, 2015

The game of “activist” hedge funds: Cui bono?

This article aims to describe the contemporary objectives and tactics of activist hedge funds as well as the actions taken by the targeted companies as a result of their intervention. In this research, we explore the consequences of activism over time (impact on operational performance and share price returns) and compare these with a random sample of firms […]

October 6, 2015

Can A New Paradigm For Corp Governance End A 30 Years War?

The decades-long conflict that is currently raging over short-termism and activist hedge funds strikes me as analogous to the Thirty Years’ War of the 17th Century, albeit fought with statistics (“empirical evidence”), op-eds and journal articles rather than cannon, pike and sword. I decided, after some thirty-six years in the front line of the army […]

August 28, 2015

To Govern in the Interest of the Corporation

In Canadian business law, directors have a duty to act in the best interest of the corporation, which includes the duty to assess, fairly and equitably, the impact of the corporation’s actions and decisions on its stakeholders. But which of the stakeholders’ expectations should be taken into account? How should a board arbitrate between the […]

May 28, 2015

IGOPP mentionned in the Wall Street Journal, the MorningstarAdvisor and the Dow Jones Newswires

The Executive Chair of the Institute, Dr. Yvan Allaire,  is mentionned in the Wall Street Journal, the MorningstarAdvisor and the Dow Jones Newswires! In an article about the activist hedge funds. “U.S. businesses, feeling heat from activist investors, are slashing long-term spending and returning billions of dollars to shareholders, a fundamental shift in the way […]

February 25, 2015

Twelve Ways to Become a Hero : Inside the Activist’s Playbook

” But it’s no joke to Yvan Allaire, Executive Chair at the Institute of Governance, who believes The Economist is running infomercials for activist hedge funds: On a topic requiring sober, balanced coverage, The Economist cuts logical corners, tramples contrary evidence, ignores a vast store of scholarship, and conjures up an empirical “study” to produce […]

February 13, 2015

The Economist’s activist hedge fund infomercial

With its knack for tackling big subjects in a one-sided manner, The Economist in its February 7th issue imagines a dystopian world where corporate managers and boards of directors are generally incompetent, most investors are lazy; but “activists are a force for good”, “capitalism’s unlikely heroes” and “the saviours of public companies”! Even for a […]

January 8, 2015

The Shareholder Value Scam

“If you guessed Hedge Funds, take your seat at the head of the class.  And, do the hedge fund and private equity firms deliver on Shareholder Value?  Not quite: “…the most generous conclusion one may reach from these empirical studies has to be that “activist” hedge funds create some short-term wealth for some shareholders as […]

December 19, 2014

Yvan Allaire: Shareholder Activism and Long-Term Value

In case you missed it last weekend, Donna Dabney, Executive Director of the Governance Center at The Conference Board posted this November 14th presentation by  Dr. Yvan Allaire presented at the Annual Meeting of The Conference Board Governance Center. His talk was titled Do activist interventions create long term shareholder value? Allaire reviews a lot of studies and […]

November 25, 2014

Inequality and executive compensation: Why Thomas Piketty is wrong?

A group of economists, among whom the French economist Thomas Piketty, produced a massive amount of data and statistics documenting the level and rise of economic inequality over long periods of time and across several countries. Making use of this information, Piketty wrote a book, which became the darling of the American, even global, left: […]

October 9, 2014

“Looking for good governance – can co-ops get it right?”

“Stay different, and don’t ape the corporate governance structures of the private sector. That in outline was the message to co-ops from Professor Yvan Allaire, the executive chair of Canada’s Institute for Governance to delegates at the co-op summit taking place in Quebec this week. Yvan Allaire talked of what he called a “deep governance […]

August 18, 2014

To govern in the interest of the corporation

The measure of a business corporation’s success is undoubtedly its economic performance. However, to achieve an excellent performance in the long run, the corporation must make the best use of the talent and experience of all its personnel. It must protect its good reputation as an employer, supplier of goods and services, buyer and citizen […]

August 18, 2014

Hedge Fund Activism and their Long-Term Consequences

In our paper “Activist” hedge funds: creators of lasting wealth? What do the empirical studies really say?” (available here), we asked Lucian Bebchuk, Alon Brav and Wei Jiang questions of the sort that any referee/reviewer for a professional journal would raise about their paper The Long-Term Effects of Hedge Fund Activism. Their paper’s aim is […]

July 22, 2014

Do Activist Hedge Funds Really Create Long Term Value?

“About a year ago, Professor Lucian Bebchuk took to the pages of the Wall Street Journal to declare that he had conducted a study that he claimed proved that activist hedge funds are good for companies and the economy. Not being statisticians or econometricians, we did not respond by trying to conduct a study proving […]

July 17, 2014

“Activist” hedge funds: creators of lasting wealth? What do the empirical studies really say?

Hedge funds have found, in some academic circles, supporters and champions of their enduring contribution to shareholder wealth. Some recent empirical research has triggered an important debate in the American corporate/financial world about the role of board of directors, the rights of shareholders, and the very concept of the business corporation. The terms of the […]

May 26, 2014

Board Members’ Compensation and Governance: Issues and Challenges

The requirements in credibility, availability and legitimacy of board members have increased substantially since 2000. In that context, directors’ compensation and its impact on their conduct and decisions become salient issues. Yet, directors’ compensation remains a little examined topic of governance. This is why the Institute for Governance (IGOPP) has produced a report prepared by […]