Shareholder activism is nothing new on the corporate landscape. The amount and intensity of such activism comes in waves usually dictated by economic forces and the missteps of a corporation's management team. And right now, the wave is at a crest.
"Over the last few years we've seen a number of corporate scandals, including problems at Enron, WorldCom, and Xerox among others," says Stuart Gillan, a visiting assistant professor of finance at the W. P. Carey School of Business. "Part of this tracks back to what investors perceive to be poor corporate governance. But at the end of the day, it comes down to poor performance and declining shareholder value. One response has been an uptick in active shareholders pressuring corporate managers for increased accountability and improved performance."
See full Article.
Posts
