Institutional Investor Governance: Evidence from Stewardship Code Disclosures

2022 Fiscal Year Research-status Report

• Project/Area Number: 21K01780
• Research Institution: Hitotsubashi University
• Principal Investigator: Routledge J. 一橋大学, 大学院経営管理研究科, 教授 (50771268)
• Project Period (FY): 2021-04-01 – 2024-03-31
• Keywords: Stewardship Code / Institutional Investors / Corporate Governance

Outline of Annual Research Achievements

The first stage of the study is complete, which focused on documenting and analyzing Stewardship Code disclosures by institutional investors and developing a governance quality measure. Necessary data collection from primary sources is complete, with research assistants having hand-collected information from the Stewardship Code disclosures for institutional investors. Content analysis of disclosures is also complete. Nikkei CGES Database CD purchase has made available data to be included in empirical models. Therefore, data needed for the empirical analysis stage of the project is ready. Data analysis and production of working papers is currently underway.

Current Status of Research Progress

2: Research has progressed on the whole more than it was originally planned.

Reason

Progress is consistent with the research plan outlined in the grant application. In particular, the 2022 milestone of finalizing data collection from institutional investor Stewardship Code disclosures has been reached. Data collection is a significant component of the research project, and its completion means subsequent empirical analysis phase of the project can be conducted according to the original schedule. There have been no significant obstacles that have affected progress as planned.

Strategy for Future Research Activity

Recent activity has been focused on data analysis and writing papers ready for conference and peer reviewed journal submission. Two research papers are currently being finalized. These are: (1) "Stewardship Regulation and Institutional Investors’ Sensitivity to Investee Governance Quality", and (2) "Do Institutional Investors Foster R&D Investment? Evidence from Stewardship Disclosures". Conference and journal submissions are planned for 2023-2024.

Causes of Carryover

Amount carried forward is due to underspending on conference attendance. The amount will be used in the next fiscal year (2023) for conference attendance and journal submission costs.