The activism of institutional shareholders has often worsened company performance.

Question

Quizplus · Accepted Answer

There is no clear evidence that the activism of institutional shareholders worsens company performance. In fact, some studies suggest that their activism can lead to positive changes in corporate governance and ultimately improve performance. However, there are cases where shareholder activism can be disruptive and counterproductive. Overall, the impact of institutional shareholder activism on company performance can vary depending on the specific circumstances and the actions taken by the shareholders.

The Activism of Institutional Shareholders Has Often Worsened Company Performance