Why is shareholder activism a corporate governance issue?
Why is shareholder activism a corporate governance issue? As part of this monitoring process, shareholders are likely to wish to intervene when they believe managerial actions are not in line with the company's interests and would destroy shareholder value (Edmans, 2014). How does Shareholder Activism ensure good corporate governance? Shareholder activism allows shareholders to take greater ownership and responsibility of the company and to voice their disapproval on issues ranging from “non-financial” issues (such as environmental, social and governance (ESG) issues) to unlocking additional value and earning a better return on their investment. What is shareholder activism and how is...