Shareholders Activism In Mergers And Acquisitions

J. Ananya, B.COM LLB (Hons.), Sastra Deemed to be University

ABSTRACT

Shareholders can influence a corporation's behavior by exercising their rights as partial owners. Shareholder activism is a practice where shareholders use their ownership rights in a company to influence corporate practices, policies, and priorities. While shareholder activism has brought about positive changes in corporate governance and increased awareness of social, political, and environmental issues, there are still many unanswered questions regarding its broader impacts. For instance, it is important to examine when shareholder activism leads to net improvements in corporate governance and helps firms address societal challenges as opposed to diverting managerial attention and resources away from core business operations. Furthermore, there is a need to move beyond the static analysis of activist-firm dyads and explore the dynamic and adaptive interdependencies that determine activism outcomes over time. Understanding how firms' responses to activism affect different stakeholders, both shareholders and non-shareholders, is crucial in determining the overall effects of activism on corporate performance and societal outcomes. The purpose of this review is to find out the role of this activism in the areas of mismanagement and oppression and also the role played in mergers and acquisition.