Shareholder Activism and the new Role of Investor Relations in German Corporate Governance Practices
Type
conference paper
Date Issued
2010-05-19
Author(s)
Abstract
This study analyzes how corporate management in Germany experiences and perceives the rise in shareholder activism, and how shareholder activism changes the interactions and power dynamics between management, activists and shareholders. Using data from interviews with CEOs and CFOs of large companies listed on the German stock exchange, we show that the rise in shareholder activism has significantly increased the perceived intensity of management interactions with the financial community. Managers see themselves as engaged in a power struggle with unruly shareholders. Shareholder activism has rekindled managers' respect for the know-how and power of investors, but, at the same time, managers strive to retain control of their companies' development. Among the most frequently described organizational responses to the rise in shareholder activism is an upgrade in the reach and strategic objectives of German investor relations departments.
Funding(s)
Language
English
Keywords
Corporate Governance
Investor Relations
Shareholder Activism
HSG Classification
contribution to scientific community
Refereed
Yes
Book title
EURAM 2010: Back to the Future
Publisher
EURAM European Academy of Management
Publisher place
Brüssel
Start page
38
Event Title
10th Annual European Academy of Management Conference (EURAM) 2010
Event Location
Rom
Event Date
19.-22.05.2010
Subject(s)
Division(s)
Eprints ID
63229