Index Funds and the Future of Corporate Governance: Theory, Evidence and Policy

Index Funds and the Future of Corporate Governance: Theory, Evidence and Policy, is co-authored by Lucian Bebchuk, James Barr Ames Professor of Law, Economics, and Finance, and Director of the Program on Corporate Governance, Harvard Law School and Scott Hirst, Associate Professor, Boston University School of Law and Research Director, Program on Institutional Investors, Harvard Law School.

It is the academic winner of the 2018 IRRCi investor research competition.

This paper studies the resources and decisions of index fund managers — how they monitor, vote and engage with their portfolio companies. This research provides an analytical framework for understanding the incentives of index fund managers,  provides the first comprehensive and detailed empirical account of the full range of stewardship activities that index fund managers do and do not undertake, and considers the significant policy implications of the issues analyzed.