2015 Millstein Governance Forum
IRRCi Research Awards
The IRRC Institute Research Award seeks to encourage thought leadership that integrates analysis of private sector behavior with investment theory. Because the judges seek to allow for a broad interpretation of this research goal, the award does not require specific areas such as specific asset classes or a requirement to study specific real economy issues. The awards are presented by IRRCi each year at the Millstein Governance Forum.
The 2015 winning academic research, Passive Investors, Not Passive Owners, demonstrates that while passive investors – such as those that invest through index funds – are not active owners in the traditional sense of accumulating or selling shares so as to exert influence over managers and their choices, they are far from passive owners. Instead, the research finds that passively managed mutual funds, and the institutions that offer them, use their large voting blocs to exercise voice and exert influence on firms’ governance. The authors include Ian R. Appel, Ph.D., assistant professor of finance at the Carroll School of Management at Boston College; Todd A. Gormley, Ph.D., assistant professor of finance at The Wharton School; and Donald B. Keim, professor of finance and director of the Rodney L. White Center for Financial Research at the Wharton School, University of Pennsylvania. Download the research here.
The 2015 winning practitioner research paper, Beyond Divestment: Using Low Carbon Indexes, provides an actionable roadmap for institutional investors trying to navigate a financially viable path for managing carbon risk. The research provides a new framework for evaluating ways to reduce exposure to both current and potential future carbon-related assets. The research is authored by a team of researchers at MSCI – Remy Briand, Linda-Eling Lee, Sébastien Lieblich, Véronique Menou and Anurag Singh. Download the research here.
Presented by: Jon Lukomnik, Executive Director, IRRC Institute
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