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The growth in pooled, institutional shareholding is one reason, but part of the explanation also lies with the decline in dividends paid out by Japanese companies.
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Mr Lipton has been campaigning to require quicker disclosure of institutional shareholdings and newly acquired block shareholdings.
Over 90percentt of institutional shareholdings were voted on during the latest proxy season in the U.S. The developments at CalPERS are foundational in positioning institutions to make the ask, according to Allan Emkin, Managing Director at Pension Consulting Alliance and an advisor to the fund's board of trustees.
Individual investors in Japan still hold little power compared with the institutional shareholders that make up much of the investor base, often as part of a web of cross-shareholdings among creditor banks, suppliers, customers and other interrelated companies that invest in one another to insulate themselves from the market.
To add insult to injury, the Google prospectus also revealed that the company's shareholding structure would be arranged in such a way that it would continue to be run by its founders, rather than dominated by the short-term obsessions of institutional shareholders and Wall Street analysts.
The endorsement of the Rockefellers (who nowadays own only a tiny slice of Exxon, though it is the family's biggest shareholding) is raising hopes of breaking through the 50% ceiling, as does the support of three of the leading firms that advise institutional shareholders on how to vote their proxies.
Institutional shareholders have fled.
Specifically, institutional investors' shareholdings and analyst coverage of sin companies increase with the degree of social norm acceptance.
Our second hypothesis concerns the relationship between institutional, especially mutual-fund, shareholding and voluntary IC disclosure.
Huang Ge and Lin (2011) started with the relation between behavior patterns of institutional investors and the pricing efficiency of the capital market, and used shareholding data of securities investment funds to empirically study the influence of funds shareholding behavior and shareholding changes on the pricing efficiency of the capital market.
The government has increased the proportion of shares granted to ordinary investors from 30% to 33%, by reducing the amount going to pension funds and other institutional investors from 70%to67%7%. Malcolm Hurlston, chairman of the Esop Centre, which promotes employee shareholding schemes, said it was "disappointing that so much" had been reserved for City funds over small investors.
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