Critics of activist investors argue that they force firms to focus on short-term considerations versus long-term performance. As such, they believe that shareholder rights to remove board members, to remove defenses, and to approve major strategic decisions through proxy contests should be restricted. Do you agree or disagree with such critics? Explain your answer.

Question

Quizplus · Accepted Answer

The Answer of Critics of activist investors argue that they force firms to focus on short-term considerations versus long-term performance. As such, they believe that shareholder rights to remove board members, to remove defenses, and to approve major strategic decisions through proxy contests should be restricted. Do you agree or disagree with such critics? Explain your answer.

Critics of Activist Investors Argue That They Force Firms to Focus