Overseeing the Greater Image: A Fresh Outlook on Shareholder Activism

Abstract

The present paper evaluates the landscape of shareholder activism, observing that while explicit forms of shareholder participation have been widely studied, a concrete gap exists in a comprehensive study that addresses shareholder activism. The paper highlights a new hypothetical framework that views shareholder advocacy as a culmination of diverse depictions—each defined by discrete purposes, mechanisms, and structures—rather than solely concentrating on remote illustrations. Furthermore, the present study suggests a holistic overview of shareholder activism, exemplifying its numerous procedures in the US and some other countries worldwide. The paper also invokes and attracts responses from academics, experts, and policymakers for governing improvements regarding shareholder activism. Additionally, the research paper provides an impetus for existing regulatory suggestions to be either too slender or too broad in scope. Likewise, few focus entirely on companies like hedge funds deprived of bearing in mind how such actions impact other stakeholders. In contrast, others support implementing governing tactics from overseas jurisdictions without accounting for the full diversity of activism models in play.

The study attempts to highlight the research gap through a comparative examination of corporate governance mechanisms of ten countries wherein the key disputes concerning the regulatory changes desire to be framed with a clear understanding of the different replicas of activism. By suggesting a technical framework for deliberating shareholder activism, it delivers a more stable method to regulatory reform and one that holds for the intricacies and diversity of activism approaches applied in multiple jurisdictions.