Corporate governance in today's world: Looking back and an agenda for the future

Corporate governance research has been driven by underlying assumptions and perspectives that are predominantly based on our understanding of US publicly listed companies and US capital market constituents with an emphasis on shareholder value maximization. Yet today, public companies face a changed governance landscape driven by the growth in passive funds, the dominance of the Big Three index funds, and the emergence of activist hedge funds. In addition, increasing investor emphasis on environmental, social, and governance matters has led to a shift away from shareholder primacy. While public companies face an altered governance context, scholars for the most part have not paid attention to the ramifications of these developments on corporate governance and strategic decision-making. We articulate the factors that have emerged and identify opportunities for future research that will lead to greater insight and a more comprehensive understanding of how the changed governance landscape is influencing managerial and board decision-making and firm outcomes.