Investors and Activism

Investors and Activism

By
David F. Larcker, Brian Tayan
CGRI Quick Guide Series.
2015

Shareholders exert influence over the corporation through the board of directors and the proxy voting process. While indirect, this influence can be powerful in shaping corporate policy.

This Quick Guide examines the relation between institutional investors and the corporation. It answers the questions:

  • What types of shareholders exist?
  • What influence do shareholders have over companies?
  • Does activism improve performance?
  • What are proxy advisors?
  • What role do proxy advisors play?