Hermitage Case

HERMITAGE CAPITAL MANAGEMENT CASE 1. Give definition of activeic investor and talk about pros and cons Shareholder activism, besides known as assignholder encounter or share ownership, occurs when shareholders employ their ownership rights to superin lam and charm how their portfolio companies manage ESG issues. Sullivan and Mackenzie (2006) categorize the activism strategies as (i) dialogue or engagement, in which companies couple with investor to discuss the profligates strategy, how the firm plans to meet its objectives, issues related to CSR and corporate governance, and so on; (ii) the use of suffrage and other formal rights, including attending annual worldwide meetings to contend questions, proposing shareholder resolutions, exercising voting rights and calling ungodly general meetings; (iii) collaboration with other investors through formal coalitions in which investors get under ones skin a unified voice; (iv) benchmarking, to compare gild c ognitive process on different ESG issues and encourage companies to ameliorate their performance; (v) media communications to allow investors to communicate their views to company directors and their advisors; and (vi) the exponent to influence share price through the buying and merchandising of shares, as the affright of takeover is recognised as primary(prenominal) to focus the warinesss attention to shareholder value.

authorization advantages of activist investor: * prop Feet to the Fire Because they oft purchase, or have the ability to purchase, (or short) crowing quantities of stock, activist shareholders are powerful. They may also hav! e a stated desire to replace the exist board. As a result, management and the board may be more result to work with an activist. In addition, activist firms tend to garner a fair amount of press and often have a podium to air their grievances. * sensitive Faces whitethorn Mean New Ideas Clearly not every activist firm will bring fresh ideas to the table. However, those that do corroborate a braggy position over...If you want to get a full essay, give it on our website: OrderCustomPaper.com

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