OECD examines the role of hedge funds and private equity firms in corporate governance

23 July 2007

The OECD Steering Group concluded at its recent meeting that “activist” hedge funds and private equity firms can play a positive role in corporate governance of publicly held companies.  The corporate governance practices of private equity firms and hedge funds are best addressed within the framework of the existing OECD Principles of Corporate Governance so that a separate code is not necessary.

A summary of the Steering Group’s discussion and its main findings, together with a background report, have been published:

• The Implications of Activist Hedge Funds and Private Equity Firms in Corporate Governance / Le rôle des sociétés de capital-investissement et des fonds d’arbitrage activistes
• A Survey of Empirical Research

General information on the Steering Group