'Global Capital Markets and Corporate Governance: Quest for Global Standards' presented at 'Corporate Governance and Cross-Border M&A: Key Challenges and Responsibilities' Third International Conference, Moscow, May 31-June 1, 2012

Abstract

The current economic and political situation requires corporations and their boards to have bold visions for future growth with long-term investments, to make proactive efforts to modulate the pressures for short-term stock price increases and to take advantage of the valuable insights gained in navigating the global financial crisis and ensuing recession. Many boards have been playing defense rather than offense these last few years, as tough economic conditions have prompted crisis management dilemmas, short-term survival strategies and other challenges. The uncertainty around the European economic situation and lingering high unemployment rates continue to batter the equity markets, hampering the performance of individual stocks. Boards have also been dealing with ever-increasing layers of corporate governance requirements and demands from activist shareholders that shift decision-making power from boards to shareholders. In addition, pressures for short-term increases in stock prices have been constant; equity markets today feature an investor mindset that too often measures success on the basis of myopic benchmarks. In this environment, the need for boardroom resolve and commitment to long-term growth is critical not only for companies, but also for the vitality of the global economy.