Shareholder activism reshaping corporate governance and challenging management interests.
Shareholder activism involves shareholders using their power to influence companies, which can sometimes be seen as a threat by corporate management. The article discusses how different types of shareholder interests can impact corporate governance. It introduces a framework to analyze how shareholders use their power based on their stock attitude, activism approach, and investment horizon. The study shows that shareholders' intentions can vary, leading to questions about the legitimacy of their actions in the corporate world.