Master Seminar
Master Seminar (summer semester 2024)
Sustainable Finance & Governance
The Masterseminar "Sustainable Finance & Governance" deals with various topics based on case studies of German companies. Data will be collected manually on various issues in order to be able to carry out brief scientific analyses on the topic of sustainable finance and governance. The topics are to be worked on individually. A defined question is to be developed with the help of the scientific/regulatory literature and the current discussion, data is to be collected and analyzed against the background of the question. The focus of the seminar is on German companies and German data, but a comparison with the international market is also possible, depending on the question.
After the topic has been assigned, the individual steps or a focus will be briefly presented and discussed at an initial Q&A seminar. The examination consists of a written paper with a maximum length of 10 pages. Further specifications can be found in the format templates for written papers of the Chair of Banking & Finance (https://www.uni-giessen.de/fbz/fb02/fb/professuren/bwl/bannier/dateien/hinweise).
Organization of the seminar:
Procedure:
- Topic allocation: Allocation as part of the kick-off event on 24.04.2024 (10 a.m. - 2 p.m.), digitally via BBB
- 1st Q&A: 22.05.2024 (10 am - 4 pm), digital via BBB
- Further Q&As by arrangement
- Deadline for submission of the written paper: 21.07.2024, 24.00 by email (subject: Masterseminar summer 2024) to bwl6@wirtschaft.uni-giessen.de
Mandatory requirements:
- Participation in the kick-off event on 24.04.2024
- Preparation of a written elaboration and submission by 21.07.2024
If one of the requirements is not fulfilled (or not fulfilled on time) without an excuse (in particular illness proven by a certificate), the seminar is deemed to have been failed.
Suggested topics:
Topic 1: Comply-or-explain - What can be deduced from the declarations of conformity of German companies with regard to the role of good corporate governance?
- Which recommendations of the German Corporate Governance Code are difficult for German companies to comply with and why?
- What can be deduced from the structure of the information in the companies' declarations of conformity with regard to the role of good governance?
Requirements:
- Structured collection of data from the declarations of conformity of selected DAX, MDAX and SDAX companies over 3 years (Excel file for evaluation and data from 2023 will be provided)
Possible tasks:
- Evaluation of the data, e.g. on the basis of Code subject areas, company sectors, index listing, etc.
- Analysis of the effect of deviations on stock returns etc.
Topic 2: Taxonomy quotas - How sustainable are German companies?
- In accordance with Article 8 of the Taxonomy Regulation, companies must state what proportions of their turnover, operating costs and investments comply with the taxonomy.
- These values are quite divergent across the different companies and tend to be low.
- Can these taxonomy ratios be used to derive how sustainable German companies really are, possibly also against the background of the relevant sectors?
Requirements:
- Structured collection of taxonomy ratios of DAX, MDAX and SDAX companies from their annual / sustainability reports
Possible tasks:
- Evaluation of the data with regard to company size, sector affiliation, index listing, etc.
Topic 3: Stewardship
- Asset managers must report once a year on their homepage on the basis of the ARUG-II requirements on the sustainability commitment they have made to their investments.
- Above all, they must indicate their voting behavior at the AGMs.
- Can we deduce from this information how "serious" asset managers really are about sustainability?
Requirements:
- Identification of relevant voting points at general meetings
- Collection of the corresponding voting behavior of selected asset managers (DWS, Union Investment, Deka, Allianz Global Investors etc) on these points at the AGMs
Possible tasks:
- How serious are asset managers about the sustainability transformation? Are they really working towards change by voting against management's direction on certain voting points?
- Are there voting points on which the asset managers tend to vote "with" the management? And should this be viewed critically?
Topic 4: Shareholder engagement and voting
- Shareholders can actively express their opinion at the Annual General Meeting by voting on various agenda items
- With regard to the Management Board remuneration system, there are two votes that are relevant:
- When the remuneration system is redesigned, a vote is held on the system; the remuneration distributed in accordance with this system, i.e. the remuneration report, is also voted on annually.
- Interestingly, the remuneration system was often adopted with a high level of approval, but the remuneration report was frequently voted against.
- From the perspective of many investors, the digital form of the Annual General Meeting is not desirable. Nevertheless, most shareholders at the 2023 AGM season voted in favor of whether the Articles of Association should allow the AGM to be held digitally.
Requirements:
- Collection of data on the voting values of DAX, MDAX and SDAX companies on the various agenda items
Possible tasks:
- What could explain the discrepancies in voting behavior? Both or individually related to the remuneration issue and / or the AGM format?
Topic 5: Climate targets in Management Board remuneration
- More and more companies are realizing that they also have a role to play in combating climate change. Almost all major listed companies worldwide have now set themselves ambitious climate targets for 2030 and beyond
- However, these voluntary commitments will only be hot air if shareholders and society do not ensure that companies actually fulfill their obligations.
- More and more companies are therefore linking Executive Board salaries to sustainability targets.
Requirements:
- Collection of data on management board remuneration at DAX, MDAX and SDAX companies
Possible tasks:
- Evaluation of the data with regard to company size, sector affiliation, index listing, etc.
We look forward to welcoming you as a future participant in our master seminar!