In this section we have looked at the different ways in which expectations about corporate governance have grown. We have briefly reviewed the role of corporate scandals as a generator of regulatory responses, and in particular the significant problems that surfaced in 2002–3. We have also noted that research shows that evidence of a positive correlation between good investment returns and good corporate governance policies is not conclusive.
We have looked at the growth of shareholder activism in recent years, and in particular the interventionist approach taken by some major pension funds to exert influence on multinational companies. The growing interest in governance has resulted in the creation of a new industry providing governance indices, which serve to highlight improvements in governance for investors and other stakeholders.