Institutional activism reshaping corporate governance for sustainable value creation.
Shareholder activism, especially by institutional investors like pension funds, can impact companies and their shareholders. Some believe activist hedge funds help passive shareholders, while others think they focus too much on short-term gains. In the European Union, activism is viewed positively, leading to proposals for stronger shareholder rights. The main goal is to explore how institutional activism affects companies and their long-term value. The focus is on Europe, but the impact is global. Institutional activism can lead to changes in corporate governance, which is crucial for sustainable behavior.