View more on these topics

Analyst argues against shareholder activism

An investment analyst is claiming that shareholder activism can stifle enterprise and damage returns for investors.

A book by Dr Arjuna Sittampalam, entitled Corporate Governance Activism – Desirable Doctrine or Damaging Dogma?, argues that widespread shareholder activism is bad for the economy.

Sittampalam is critical that institutional investors and fund managers are increasingly intervening in the management and strategy of companies in which they invest.He suggests that intervention detracts from market liquidity and efficiency, reduces savers’ trust in institutions and could increase insider dealing.

He says: “All those concerned with fostering enterprise and business efficiency, including politicians, regulators and corporate bodies, need to ensure activism does not adversely affect industry and the long-term vitality of the economy.”

Recommended

Turn on transparency

The FSA has taken the wrong route and is confusing the public with its stance on fee disclosure for mortgage clubs.

Flight fights on for IFAs

Tory campaigner for IFA rights Howard Flight says he hopes to be battling for financial advisers long into the future.

Knight Frank enters retail market with property fund

Knight Frank Investment Management is moving into the retail market with a commercial property fund for intermediaries’ high-net-worth clients, having previously offered only institutional funds.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment