Dear colleagues, The Department of Economics cordially invites you to the WU Economic Research Seminar (Department Seminar) on Wednesday, November 20, with Eelke Heemskerk (University of Amsterdam) on Steering capital: the growing private authority of index providers in the age of passive investing Since the global financial crisis, a research program has emerged that analyzes the structural changes of global finance, including the shift of assets towards index funds provided by large 'passive' asset managers. Rather than actively picking stocks, index funds replicate stock market indices such as the S&P 500. But where do these indices actually come from? This paper analyzes the politico-economic role of index providers, a small group of highly profitable American and British firms including MSCI, S&P Dow Jones Indices, and FTSE Russell. We argue that these index providers have become powerful actors which exercise growing private authority as they steer investments through the indices they create and maintain. Rather than a purely technical exercise, constructing indices is inherently political. Which companies or countries are included into an index or excluded (i.e. receive investment in- or outflows) is based on criteria defined by index providers, thereby setting standards for corporate governance and investor access. Hence, in this new age of passive investing index providers have become critical gatekeepers that exert de facto regulatory power. Consequently, how index providers create indices has important effects on countries' economic policies and on the corporate governance of listed companies. Time and place: Wednesday, November 20, 4.30 - 6.00 p.m., Campus WU, Welthandelsplatz 1, 1020 Vienna, building D4, entrance A, 2nd floor, Department meeting room 2.008. With best regards, Harald Oberhofer --- Univ.-Prof. Dr. Harald Oberhofer Institute for International Economics WU Vienna University of Economics and Business Phone: +43/1/31336-4984 Fax: +43/1/31336-4984 Email: harald.oberhofer@wu.ac.at<mailto:harald.oberhofer@wu.ac.at> Webpage: https://www.wu.ac.at/ie/mitarbeiter/harald-oberhofer/ Austrian Institute of Economic Research (WIFO) Phone: +43/1/7982601-468 Fax: +43/1/7989386 Email: harald.oberhofer@wifo.ac.at<mailto:harald.oberhofer@wifo.ac.at>