Shareholder activism and institutional investors, Working Paper Series: no. 50

The paper builds a picture of the motivation for, and impediments to, individual and institutional shareholder activism. We consider shareholder activism within agency theory and discuss the limitations of the annual general meeting (AGM) as a site for activism. We note that retail share ownership h...

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Main Authors: Nowak, Margaret, McCabe, Margaret
Format: Working Paper
Published: Curtin University of Technology 2005
Online Access:http://hdl.handle.net/20.500.11937/32517
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author Nowak, Margaret
McCabe, Margaret
author_facet Nowak, Margaret
McCabe, Margaret
author_sort Nowak, Margaret
building Curtin Institutional Repository
collection Online Access
description The paper builds a picture of the motivation for, and impediments to, individual and institutional shareholder activism. We consider shareholder activism within agency theory and discuss the limitations of the annual general meeting (AGM) as a site for activism. We note that retail share ownership holdings are characteristically small. Institutional investor activism as a substitute for retail shareholder activism, to achieve informative prices, increased liquidity and lower monitoring costs, is discussed. We report Australian data on the practices of funds managers. We discuss a perceived dichotomy among institutional investors between those who are ‘relational investors’ and those who opt for a ‘hold’ or ‘exit’ strategy.
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institution Curtin University Malaysia
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spelling curtin-20.500.11937-325172017-01-30T13:31:20Z Shareholder activism and institutional investors, Working Paper Series: no. 50 Nowak, Margaret McCabe, Margaret The paper builds a picture of the motivation for, and impediments to, individual and institutional shareholder activism. We consider shareholder activism within agency theory and discuss the limitations of the annual general meeting (AGM) as a site for activism. We note that retail share ownership holdings are characteristically small. Institutional investor activism as a substitute for retail shareholder activism, to achieve informative prices, increased liquidity and lower monitoring costs, is discussed. We report Australian data on the practices of funds managers. We discuss a perceived dichotomy among institutional investors between those who are ‘relational investors’ and those who opt for a ‘hold’ or ‘exit’ strategy. 2005 Working Paper http://hdl.handle.net/20.500.11937/32517 Curtin University of Technology fulltext
spellingShingle Nowak, Margaret
McCabe, Margaret
Shareholder activism and institutional investors, Working Paper Series: no. 50
title Shareholder activism and institutional investors, Working Paper Series: no. 50
title_full Shareholder activism and institutional investors, Working Paper Series: no. 50
title_fullStr Shareholder activism and institutional investors, Working Paper Series: no. 50
title_full_unstemmed Shareholder activism and institutional investors, Working Paper Series: no. 50
title_short Shareholder activism and institutional investors, Working Paper Series: no. 50
title_sort shareholder activism and institutional investors, working paper series: no. 50
url http://hdl.handle.net/20.500.11937/32517