Buy-Side Receptivity to Activism
In a recent Rivel Intelligence Council Quarterly Perception Study we asked 353 global investment professionals their updated views on shareholder activism.
The global buy-side remains highly amenable to shareholder activism. The large majority believes this is a positive development for the equity markets. The investment community believes that activism (or the threat of it) is credited with keeping management focused, accountable and committed to making sound capital deployment decisions.
Receptivity is somewhat lower but still widespread (61%) when it comes to stocks investors already hold – especially when they think a company they own has too much cash on its balance sheet.
This kind of receptiveness extends from a high of 71% in the US to a low of 40% in the Asia-Pacific region.