Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Quality Auditing

Authors: B. Scott Parsowith

1st Edition

0873892402, 978-0873892407

More Books

Students also viewed these Accounting questions