Shareholder activists: A threat for the global ecconomy?
Publication Type
Blog Post
Publication Date
5-2016
Abstract
The rise of shareholder activism has become a global phenomenon. Shareholder activists are not only present–as they started–in the US, but also in European and Asian Markets. This situation has generated a vast literature about the desirability (or not) of shareholder activism. In essence, there are two main positions: (i) those who argue that shareholder activists improve the corporate governance of the firm, and therefore they help increase the value of the firm;and (ii) those who claim that shareholder activists only improve the value of the firm in the short-term, and they encourage managers to cut investment in research, development and other long-term projects with higher profitability (but less liquidity) that may best contribute to the promotion of social welfare.
Discipline
Banking and Finance Law | Business Organizations Law
Research Areas
Corporate, Finance and Securities Law
Publisher
Taylor & Francis (Routledge): SSH Titles - no Open Select
Citation
Aurelio GURREA-MARTINEZ.
Shareholder activists: A threat for the global ecconomy?. (2016).
Available at: https://ink.library.smu.edu.sg/sol_research/3742