Does institutional shareholder activism benefit the monitoring firm?

Kiran Kumar () and Priyanka Anvekar ()
Additional contact information
Kiran Kumar: Karnatak University Dharwad
Priyanka Anvekar: KLS Gogte Institute of Technology

Future Business Journal, 2025, vol. 11, issue 1, 1-14

Abstract: Abstract Many empirical studies have proved that shareholder activism has a negative or negligible impact on the share value and profitability of investee firms. This study aims to understand the impact of shareholder activism on the profitability of the monitoring firm and not the target firm. The mutual fund regulator made it mandatory for them to exercise their votes in their investee companies actively. Voting actively is an indicator of achieving shareholder activism. The present study sheds light on how the voting pattern of mutual fund companies affected their financial performance in the last 5 years. Data have been collected from annual reports of the top 30 mutual funds selected for the study. The stepwise regression analysis is executed to evaluate the effect of votes cast on these performance indicators. It was found that institutional shareholder activism has negligible influence on their financial performance.

Keywords: Shareholders activism; Mutual fund activism; Activist firm; Firm performance; Stepwise regression analysis (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1186/s43093-025-00587-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:futbus:v:11:y:2025:i:1:d:10.1186_s43093-025-00587-7

Ordering information: This journal article can be ordered from
https://fbj.springeropen.com/

DOI: 10.1186/s43093-025-00587-7

Access Statistics for this article

Future Business Journal is currently edited by Soad Kamel Rizk and Hayam Wahba

More articles in Future Business Journal from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().