Institutional Determinants of Private Shareholder Engagement in Brazil and South Africa: The Role of Regulation
本研究通过44个深度访谈，探讨巴西和南非的监管如何影响养老金和资产管理公司对上市公司的ESG参与，发现立法虽不直接鼓励参与行为，但通过提升投资者理解、增加利益相关方兴趣和降低信托责任担忧，为ESG参与创造了有利环境。
Abstract Manuscript type Empirical Research Question/Issue This study investigates to what extent regulation encourages private shareholder engagement attitudes and behavior (including behind‐the‐scenes consultations, letters, meetings, and ongoing dialogues) of pension funds and asset managers with listed investee companies on environmental, social, and corporate governance (ESG) issues in Brazil and South Africa. Research Findings/Insights Drawing on 44 in‐depth semi‐structured interviews with pension fund representatives, asset managers, and other investment players, the findings suggest that legislation provides limited direct encouragement to private engagement behavior. However, legislation encourages attitudes toward Responsible Investment by enhancing investor understanding of Responsible Investment, increasing the interest of pension funds and asset consultants in the Responsible Investment practices of asset managers, and reducing the fear of pension funds to violate their fiduciary duties, thereby promoting an enabling environment for ESG engagement. Theoretical/Academic Implications This article adds to the literature on comparative corporate governance and shareholder engagement. To the best of our knowledge, this is first study that specifically analyzes how regulation affects private shareholder engagement behavior in emerging markets, providing empirical support for the institutional perspective. The findings also suggest that the sophistication of the legislation on ESG issues in Brazil and South Africa is more typical of developed countries, indicating the need for a more fine‐grained analysis of emerging markets in corporate governance studies. Practitioner/Policy Implications This study draws investors' attention to the importance of understanding the national legal environment of the companies with which they engage and offers insights to governments interested in fostering ESG engagement practices.