Transforming corporate governance: Exploring tokenization’s impact on transparency and ownership — A research agenda

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Abstract

The integration of tokenization into corporate governance marks a transformative shift in managing corporate ownership and transparency through blockchain technology. This research agenda explores the practical and managerial implications of tokenization, focusing on enhancing shareholder communication and decision-making. By addressing inefficiencies and opacity in traditional corporate governance, tokenization democratizes shareholder participation, streamlines processes, and improves transparency and accountability. Anchored in a comprehensive literature review, the study synthesizes existing research and identifies gaps in understanding tokenization’s impact on corporate governance. Key themes include the role of institutions and governance mechanisms, blockchain’s potential to enhance transparency, reduce intermediaries, lower costs, and boost shareholder engagement. The study also examines evolving legal frameworks and regulatory challenges, emphasizing the need for regulatory clarity to facilitate adoption. A comparative analysis of blockchain platforms versus traditional financial markets highlights unique advantages and challenges related to liquidity, regulatory frameworks, accessibility, transparency, efficiency, stability, trust, and security. This agenda provides a structured framework for investigating the multifaceted impact of tokenization on corporate governance. The findings underscore the importance of innovative regulatory approaches and robust security measures to ensure blockchain platform stability. Future efforts should focus on developing comprehensive regulatory frameworks and ongoing education initiatives to support the democratization of financial markets through blockchain technology, ultimately contributing to a more efficient and equitable corporate landscape.

Keywords: Blockchain, Corporate Governance, Institutional Investors, Tokenization

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G34, K22, O33

Received: 15.10.2023
Accepted: 05.08.2024
Published online: 07.08.2024

How to cite this paper: Agostini, M. (2024). Transforming corporate governance: Exploring tokenization’s impact on transparency and ownership — A research agenda. Risk Governance and Control: Financial Markets & Institutions, 14(3), 47–56. https://doi.org/10.22495/rgcv14i3p5