This master thesis endeavors to scrutinize the efficacy of shareholder activism as a governance mechanism. Drawing upon existing research, it seeks to unravel the intricacies of this phenomenon, spanning its definitions, historical evolution, and diverse manifestations. The thesis will delve into the challenges posed by active shareholders, including the free rider problem, agency conflicts, and the contentious realm of proxy fights. Additionally, it will conduct a comprehensive exploration of the motivations driving shareholder activism, encompassing economic incentives, moral imperatives, and the burgeoning influence of Environmental, Social, and Governance (ESG) considerations.
Real-world case studies, such as the Shell vs. ClientEarth dispute, will be dissected to illuminate the practical implications of shareholder activism. Furthermore, the dynamics of investor relations, the tactics deployed by activist shareholders, and their tangible impact on corporate governance will be rigorously examined.
In conclusion, this thesis endeavors to offer illuminating insights into the intricate interplay of power, responsibility, and influence within modern corporate governance. As companies navigate the evolving nexus of profit-making and social responsibility, understanding the role and impact of active shareholders assumes paramount importance. Through rigorous analysis and nuanced interpretation, this thesis aims to contribute to a deeper comprehension of the multifaceted phenomenon of shareholder activism.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Theoretical Framework
- Definition of shareholder activism
- History of shareholder activism
- Types of shareholder activism
- Challenges with active shareholders
- Effects on corporate governance
- Research and necessity of the topic
- Main issues with shareholder activism
- Overview
- Free rider problem
- Agency problem
- Proxy fights
- Combined issues
- Exit and voice
- Forms of voice activism
- Motivations for shareholder activism
- Moral motivation
- Economic motivation
- ESG motivation
- Private equity
- Hedge fund activism
- Pension fund activist
- Labour unions
- Investment companies
- Investor relations
- Approaches of activists
- Shareholder intervention in firm governance
- Shareholder proposals
- Corporate Gadflies
- Tactics of gadflies
- Example: Shell vs ClientEarth example of shareholder activism
- Review: Can shareholders affect corporate governance?
- Do shareholder create an effective governance mechanism?
- How corporates can avoid proxy fights and engage with shareholders
- Outlook
- Summary
- Limitations
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This book provides a comprehensive analysis of shareholder activism, examining its historical development, theoretical framework, and practical implications for corporate governance. The study delves into the various types of shareholder activism, explores the motivations behind activist actions, and investigates the effectiveness of shareholder activism as a mechanism for influencing corporate decision-making.- The definition, history, and evolution of shareholder activism
- The theoretical framework underpinning shareholder activism and its impact on corporate governance
- The various motivations and tactics employed by shareholder activists
- The effectiveness of shareholder activism in influencing corporate decisions and improving corporate governance
- Case studies and real-world examples of shareholder activism in action
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter provides an overview of shareholder activism and its importance in the context of corporate governance.
- Theoretical Framework: This chapter explores the theoretical foundations of shareholder activism, defining key concepts, tracing its historical development, and examining the different types of activism.
- Research and necessity of the topic: This chapter discusses the relevance of shareholder activism as a research topic and its significance for understanding contemporary corporate governance practices.
- Main issues with shareholder activism: This chapter examines the challenges and potential drawbacks associated with shareholder activism, including the free rider problem, agency conflicts, and proxy fights.
- Motivations for shareholder activism: This chapter explores the various motivations behind shareholder activism, ranging from moral and economic concerns to ESG considerations and private equity interests.
- Investor relations: This chapter focuses on the relationship between shareholder activists and corporations, analyzing the role of investor relations in managing activist engagement.
- Approaches of activists: This chapter delves into the different approaches and tactics employed by shareholder activists, including shareholder proposals, corporate gadflies, and various intervention strategies.
- Example: Shell vs ClientEarth example of shareholder activism: This chapter provides a real-world example of shareholder activism, examining the case of Shell and ClientEarth, highlighting the practical implications of activism.
- Review: Can shareholders affect corporate governance?: This chapter explores the effectiveness of shareholder activism as a mechanism for influencing corporate governance, analyzing the potential impact of activists on corporate decision-making.
Schlüsselwörter (Keywords)
This research paper focuses on the critical role of shareholder activism in influencing corporate governance. Key terms and concepts include shareholder activism, corporate governance, activist investors, proxy fights, free rider problem, agency conflicts, ESG investing, moral and economic motivations, shareholder proposals, corporate gadflies, and the effectiveness of shareholder activism in achieving positive change.- Quote paper
- Anonym (Author), 2024, The Power of Shareholder Activism. A Force for Change in Corporate Governance?, Munich, GRIN Verlag, https://www.grin.com/document/1445707
