Research suggests that institutional activism may not have a strong direct effect on firm performance but may indirectly influence the targeted firm's strategic decisions, including those concerned with international diversification and innovation.

Question

Quizplus · Accepted Answer

This statement is supported by research indicating that although institutional activism may not have an immediate impact on firm performance, it can still shape the strategic decisions made by companies, particularly in areas such as international diversification and innovation. This suggests that institutional activism can indirectly influence long-term performance outcomes for targeted firms.

Research Suggests That Institutional Activism May Not Have a Strong