Book contents
- Hard Lessons in Corporate Governance
- Hard Lessons in Corporate Governance
- Copyright page
- Dedication
- Contents
- Acknowledgments
- Editorial Note
- Introduction
- 1 Our Corporate Governance Experiment
- Part I What Do We Know about Corporate Governance Practices?
- 2 Best Practices for Boards of Directors
- 3 Can We Measure Corporate Governance?
- 4 Do We Understand Executive Compensation Best Practices?
- 5 What Explains Shareholder Voting?
- 6 Shareholder Activism
- 7 Proxy Advisors
- Part II What Can We Conclude about Our Theories of Corporate Governance?
- Part III Are Social Welfare Outcomes Any Different?
- Index
6 - Shareholder Activism
from Part I - What Do We Know about Corporate Governance Practices?
Published online by Cambridge University Press: 23 May 2024
Book contents
- Hard Lessons in Corporate Governance
- Hard Lessons in Corporate Governance
- Copyright page
- Dedication
- Contents
- Acknowledgments
- Editorial Note
- Introduction
- 1 Our Corporate Governance Experiment
- Part I What Do We Know about Corporate Governance Practices?
- 2 Best Practices for Boards of Directors
- 3 Can We Measure Corporate Governance?
- 4 Do We Understand Executive Compensation Best Practices?
- 5 What Explains Shareholder Voting?
- 6 Shareholder Activism
- 7 Proxy Advisors
- Part II What Can We Conclude about Our Theories of Corporate Governance?
- Part III Are Social Welfare Outcomes Any Different?
- Index
Summary
Beyond voting, shareholders can participate in corporate governance through shareholder proposals, proxy contests, and takeovers. The evidence shows little to no benefit to firm performance or corporate governance over the long term following shareholder proposals and proxy contests. Takeovers suffer from similar failings in that there is no evidence they are actually about controlling agency costs or that the target company’s performance improves following acquisition. In fact, takeover defenses appear to be associated with better corporate outcomes.
Keywords
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- Hard Lessons in Corporate Governance , pp. 118 - 142Publisher: Cambridge University PressPrint publication year: 2024