A Critical Examination of the Actions and Impact of Activist Investors

Abstract

An activist investor's primary strategy is to acquire a large number of shares in the target company, publicly propose a specific set of changes for the company and negotiate with the board of directors, take any additional measures necessary to achieve the desired changes, and eventually sell all of the shares after reaching a specific target. While I believe that activist investing is generally beneficial to corporate governance and development, it is undeniable that activist investors can sometimes be detrimental to a company's development, we should consider the country's realities, capitalize on its strengths, avoid its weaknesses, and play a positive role as an activist investor.