Intensified Shareholder Activism

It is common for seniors to acquire shares of multinational companies using their pension funds and matured insurance premiums. These sources of funds are hard earned lifetime savings, thus are highly valued by shareholders. Considering the length and magnitude of their investments, shareholder activism provides pre-emptive screening towards corporate practices that potentially harm the growth and profitability of businesses.
The involvement of shareholders in corporate governance actually results in lowered operational costs and improved financing options. Since shareholders review the strategic management plans, they independently check on critical factors such as costs of borrowing and litigation, improved corporate image, and increased value of stock prices. Moreover, independent directors, those without direct relationships to management, strengthen the core value of businesses through transparency, autonomous auditing, and honest financial reports.