Trending: Call for Papers Volume 4 | Issue 4: International Journal of Advanced Legal Research [ISSN: 2582-7340]

SHAREHOLDER ACTIVISM IN INDIA VS U.S. – Vishal Maurya & Dr. Parishkar Shreshth


In the literature on corporate finance, shareholder activism is one of the topics that receive the most discussion and argument. One school of thinking emphasizes the advantages of shareholder activism, while another has been discussing its drawbacks. Whether you like it or not, it is everywhere, including in developing nations like India. For the last three decades, activism has existed in developed countries like the USA (Denes et al., 2017). Since the advent of The Company Act in 2013, India has seen an increase in activist instances without presence significant pensions or hedge funds. There are over 4,000 listed companies in India. As of October 2021, India had over 50 million+ total registered investors. It’s crucial to have an adequate framework for investor protection in place with such a large and expanding investment base. Therefore, it’s critical to comprehend whether the rising activism is helping investors or publicly traded corporations. The study’s main objective is to evaluate how shareholder activism affects corporate performance. This study is carried out in a unique environment (India’s emerging economy) devoid of traditional activist investors like hedge funds and pension funds. Using a variety of corporate governance and activism indicators, we developed a thorough shareholder activism index (sha index). In contrast to earlier studies in this field, we developed a rigorous activism index as a stand-in for activism.