Intermediate Financial Accounting II
Shareholder activism refers to the efforts by shareholders to influence a corporation's behavior, typically aimed at improving financial performance, governance, and accountability. This can include actions such as proposing changes in management, advocating for environmental or social responsibility initiatives, or pushing for increased transparency in corporate practices. It is an important aspect of the principal-agent relationship, where shareholders (principals) seek to ensure that management (agents) acts in their best interests.
congrats on reading the definition of shareholder activism. now let's actually learn it.