investors need to be prepared to pursue an escalation strategy. However, such an approach also needs a strong long-term commitment and investment perspective as well as an attitude that considers the long-term interests of the company.Institutional investors have a high level of expertise that can contribute to the widely discussed improvement of the competence and independence of boards. Important prerequisites of institutional investors who wish to play a role in corporate governance are no conflict of interest and sufficient sector expertise.The managerial implications are that the investor relations function is well established. Communication is the most appropriate measure. However, other typical and presumably more powerful measures like use of voting rights, engagement in the AGM, regular contact with the members of the supervisory board, taking a seat on the supervisory board, owning a meaningful company stake and collaboration with other shareholders play a minor role.

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