Despite immediate shareholder benefits, activist directorships may yield increased reports of stakeholder harm
The appointment of activist-nominated directors is an emerging phenomenon, but they've come with increased reports of stakeholder harm. A new study published in Strategic Management Journal found that activist directors bring immediate benefits to shareholders, but they appear to impose a managerial myopia that results in executives becoming less inclined to make long-term investments.
The appointment of activist-nominated directors is an emerging phenomenon, but they've come with increased reports of stakeholder harm. A new study published in Strategic Management Journal found that activist directors bring immediate benefits to shareholders, but they appear to impose a managerial myopia that results in executives becoming less inclined to make long-term investments.
