Question
Investors, particularly institutional investors, should be engaged actively in monitoring their companies corporate governance and fundamental decisions. Investors should participate in important affairs and engage
Investors, particularly institutional investors, should be engaged actively in monitoring their companies corporate governance and fundamental decisions. Investors should participate in important affairs and engage with companies where value can be added to their investments. By virtue of their influence and power, institutional investors should intervene when ineffectiveness or breakdowns in corporate governance occur to assist in protecting sustainable shareholder value. Individual shareholders can change managerial directions and decisions by selling their shares when there is corporate underperformance, and if the majority of shareholders follow suit, management will be forced to act. In the case of institutional investors where funds are indexed with limited ability to sell, institutional engagement in corporate governance is the only way to correct ineffectiveness in corporate governance. Is one institutional investor enough to make a difference in correcting corporate governance of an organization?
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