Global Corporate Governance Colloquia (GCGC) 2017

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Videos of the presentations are available on www.gcgc.global 

The third annual GCGC Conference was hosted by the University of Tokyo on 2 – 3 June 2017.

GCGC 2017, hosted by the University of Tokyo, presented a series of influential papers that addressed critical themes in corporate governance, focusing on shareholder dynamics, corporate law, and executive decision-making. 

A significant theme throughout the conference was the impact of ownership structures and shareholder investment horizons on corporate behavior. The paper "Common Ownership, Competition, and Top Management Incentives" examined how common ownership across firms in the same industry diminishes competitive pressure, altering executive compensation and influencing corporate strategy. Similarly, "Shareholder Investment Horizons and the Market for Corporate Control" explored how short-term investors drive firms toward immediate financial returns through mergers and acquisitions, while long-term investors promote sustainable decisions. 

The conference also highlighted the role of corporate law and regulatory structures in shaping corporate governance. In "Does Agency Structure Affect Agency Decision making? Implications of the CFPB’s Design for Administrative Governance", the research demonstrated how the independence of agencies like the Consumer Financial Protection Bureau (CFPB) impacts their policy-making processes, shedding light on the balance between regulatory autonomy and democratic accountability.

Additionally, team dynamics and their influence on firm performance were a recurring theme. The paper "Team Stability and Performance: Evidence from Private Equity" challenged the traditional view that stable teams lead to superior performance. The findings suggested that turnover within private equity teams, particularly the replacement of underperforming individuals, could enhance performance in both the short and long term.

Furthermore, "Managers’ Personal Bankruptcy Costs and Risk-Taking" examined how bankruptcy reforms in Korea influenced managers' risk-taking behavior, revealing that reducing personal bankruptcy risks encourages more aggressive corporate strategies and investment.

The conference also tackled corporate inversions and tax efficiency, with the paper "What Drives Corporate Inversions? International Evidence" demonstrating that tax incentives and governance standards are key drivers for firms seeking to relocate through corporate inversions. This highlighted the complex relationship between corporate mobility, governance, and financial incentives in a globalized economy.

The research provided valuable insights into how governance practices adapt to changing market conditions and regulatory environments, shaping the future of corporate behavior.