Governance and Activist Investors Outside of the U.S.
Activism is spreading around the globe, and this case offers specific examples from Japan, Germany, and China. Japans new governance code, implemented in 2015, has opened the door to more Western corporate governance trends. For example, boards that once featured only company insiders now include more outsiders, and some engagement, or activist, funds have started to exert a stronger influence on the countrys organizations. Activist firms have also sprung up in Germany, although its governance code minimizes the effect of activist investors to some degree so there has been less CEO turnover than in other countries such as the United States. In Hong Kong, activist firms are taking a more active role, and homegrown activist funds have even come into play with such Chinese-based firms as Alibaba and Tencent.
Another type of investment fund is the sovereign wealth fund, and these funds are also taking a more active role in both developed and emerging economies around the globe. They have been known to make investments and exert their influence in a variety of industries. In some cases, these funds use investments to support their home countrys political agenda, for example, by investing in sustainable energy sources.
