During the financial crisis, political and financial authorities were back against the wall when facing the global deterioration of the financial sector. When a bank was about to default, two options were on the table: either let them fail with (often) unpredictable consequences on the financial and real economy, or rescue them using taxpayer money. The EU country members were not aligned in their choices, taking sometimes inconsistent decisions. In any case, when the second option was chosen, it resulted into durable reputation damage.Read More
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The agency cost is considered by many as a timeless concept. Indeed, the information asymmetry that exists between shareholders and the Chief Executive Officer is generally held to be a classic example.
In this context, the first Shareholder Right Directive (SRD) has been adopted by the European Parliament in 2007 in order to ensure a better protection of the exercise of shareholders rights in listed European companies, by implementing rules around transparency, proxy voting rights and the ability to vote in general meetings via electronic means.Read More