Bringing the AGM to the 21st Century: Blockchain and Smart Contracting Tech for Shareholder Involvement

Elst, Christoph Van der; Lafarre, Anne

doi:10.2139/ssrn.2992804

Cited by 17 publications

(8 citation statements)

References 2 publications

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“…The research findings also align with the best available research and suggest that corporate governance could change and benefit in different ways under a blockchain regime (Tapscott and Tapscott, 2016; Cygnetise, 2018; Haque, 2018; Fink Bradley, 2017; Van der Elst and Lafarre, 2017; Yermack, 2016).…”

Section: Discussionsupporting

confidence: 80%

“…For shareholders, blockchain could offer lower costs of trading and more transparent ownership records, while permitting visible real-time observation of transfers of shares from one owner to another (Van der Elst and Lafarre, 2017). The unique characteristic of blockchain is that it does not remain static, it continuously evolves by accommodating “smart contracts” in its very design as demonstrated by Ethereum.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Almost all industries, from manufacturing, services to conglomerates, can be protected from all sort of piracy (Calderon et al , 2016; Fink Bradley, 2017; Tapscott and Tapscott, 2016). Blockchain uses a timestamp which cannot be altered and could be the record keeper for all property and subsequent transactions (Kostyuk, 2005; Tapscott and Tapscott, 2016; Van der Elst and Lafarre, 2017; Calderon et al , 2016). Blockchain, by ensuring democratization in corporate governance practices offer scope for companies to manage their assets directly.…”

Section: Theoretical and Managerial Implicationmentioning

confidence: 99%

“…The blockchain offers new prospects to facilitate the agency relationship between corporate participants, thereby creating trust and transparency (Fearnley and Soohoo, 2018). This offers huge scope for reduced agency costs for both shareholders and companies through the optimization and modernization of the annual general meeting (AGM) (Van der Elst and Lafarre, 2017). For instance, in a private blockchain Hyperledger of IBM, the company and shareholders that hold sufficient shares can place proposals (Cygnetise, 2018).…”

Section: Introductionmentioning

confidence: 99%

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Blockchain technology in corporate governance: disrupting chain reaction or not?

Singh

Jain

Munjal

et al. 2019

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Purpose The purpose of this paper is to determine the stakeholders’ acceptance on blockchain and to investigate the model fit by using “Technology Acceptance Model” with special reference to corporate governance through cryptography to resolve the decades-old problems of financial record-keeping. Design/methodology/approach The whole analysis has been performed in the two steps, i.e. confirmatory factors analysis and structural equation modeling, to prove model fit between behavioral intention and actual behavior for using blockchain technology. Total 223 respondents have been selected, and the selection of the respondent is primarily on the basis of their previous experience with trading corporate equities. Findings The study determines empirically all the mentioned relationships of attitude, perceived ease of use and perceived usefulness with the behavioral intention as per the conceptual model to prove the relationship. The results of the manuscript shows the model fit indexes for various constructs are prove the model fit as per the theorized model. The values of the various indexes are found to be under the permissible range which explains the relationship of various constructs based on the theorized model. Research limitations/implications Despite, the limitations in terms of selection of sampling methods, outcome and the interpretation, the results proves the fit with the theoretical framework. The major implication is to understand the real-time use of blockchain technology for the transfer of shares from one party to other. Practical implications Stakeholders in corporate governance namely customers, creditors, suppliers, community, employees, owners, investors, trade unions and social activists could benefit in different ways. Investors could benefit from being able to purchase equity at low price and to sell them into a market with greater liquidity, but they would found it difficult to camouflage their trades. Social implications The study opines that virtually all aspects of the corporate governance can be improved through the adoption of this technology resulting in greater transparency, improved liquidity and lowering costs. Originality/value This study will be a reference for global players in the financial industry that have started investing in this innovative technology vis-à-vis recent announcement of adoption of blockchain by global exchanges including NASDAQ, NYSE and Deutsche Borse, as a new method for trading, tracking ownership and monitoring systemic risk for strengthening corporate governance mechanism. This study will have a significant index for future reference where the technology adoption will be tested to have better corporate governance which will be useful for academics and professionals.

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Section: Discussionsupporting

confidence: 80%

Section: Literature Reviewmentioning

confidence: 99%

Section: Theoretical and Managerial Implicationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Blockchain technology in corporate governance: disrupting chain reaction or not?

Singh

Jain

Munjal

et al. 2019

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“…Put another way, the adoption of a specific technology, among others, reveals and influence the social and historical context in which this technology operates. 38 Consequently, not only the choice of a blockchain regime would influence law, due to its particular design, but also the way it would be adopted would have great social and political (and legal) implications. In other words, like any other technological artifacts, blockchain is not neutral but 'inherently political'.…”

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confidence: 99%

The Potential Impact of Blockchains on Corporate Governance: A Survey on Shareholders’ Rights in the Digital Era

Magnier

Barban

2018

iele

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Blockchains offer a revolutionary application of cryptography and information technology to old financial record-keeping issues while forging great hopes with regard to lower cost, greater liquidity, more accurate record-keeping, and transparency of ownership. There is also an increasing demand from individual companies to employ blockchains in their activities as some stock exchanges see blockchain technology as a new method for trading corporate equities and tracking their ownership. At the same time, an expanded use of this new technology may introduce new risks on the market and lead to far-reaching changes in corporate governance. The end of anonymity is one of these issues but other corporate governance issues may be raised. While EU regulation regarding shareholders' rights is moving forward, these risks have not been taken into account so far: the potential impact blockchains may have on shareholders' protection in the EU Market and elsewhere is absent. European institutions seem to have dodged consideration of this impact. This paper evaluates the potential implication blockchains may have in a near future, assessing whether and how this new technology may modify the balance of power among managers, institutional investors, small shareholders, proxy advisors and other parties involved in corporate governance.

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Blockchain Technology for Enabling Transparent and Traceable Government Collaboration in Public Project Processes of Developing Economies

Abodei

Norta

Azogu

et al. 2019

Lecture Notes in Computer Science

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Infrastructural development is a significant determinant of economic growth. It remains an elusive pursuit for many developing economies suffering from public infrastructural project failures. Although the causes of these failures are identifiable, they remain persistent. Government corruption has been identified as the primary cause of project failures amidst a host of other causal factors, spurred by the ambiguity in public service administration. These factors heighten capital expenditures and hence, the need for more transparent systems in public infrastructural project planning and -delivery. This research uses a case-study methodology to examine the importance of public involvement in addressing the causes of failures in public infrastructural project planning and -delivery. Using Nigeria as a case, the findings from conducted interviews and a documents review support the proposition of a technologically collaborative approach in addressing the causes of public infrastructural project failures. The institutionalization of transparency-enhancing blockchain systems are vital in government and public involvement in the processes of public infrastructural project planning and -delivery.

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Bringing the AGM to the 21st Century: Blockchain and Smart Contracting Tech for Shareholder Involvement

Cited by 17 publications

References 2 publications

Blockchain technology in corporate governance: disrupting chain reaction or not?

Blockchain technology in corporate governance: disrupting chain reaction or not?

The Potential Impact of Blockchains on Corporate Governance: A Survey on Shareholders’ Rights in the Digital Era

Blockchain Technology for Enabling Transparent and Traceable Government Collaboration in Public Project Processes of Developing Economies

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