Shareholder activism in Indonesia: revisiting shareholder rights implementation and future challenges

Prisandani, Ulya Yasmine

doi:10.1108/ijlma-07-2021-0169

Cited by 5 publications

(9 citation statements)

References 29 publications

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“…Following paragraphs elaborate upon some popular tools due to which an upsurge in shareholder activism has been witnessed. Extant literature has given evidence depicting the impact of shareholder proposals, which enables them to include important items in the agenda of AGMs (Prisandani, 2021). They could include for instance, some advice/guidance on companies' operating performance (John and Klein, 1995;Smith, 1996;Strickland et al, 1996;Bates and Hennessy, 2010;Wei, 2020;Fan, Radhakrishnan, and Zhang, 2021), and/or relating to the company's market returns (Gillan and Starks, 2000).…”

Section: Tools Of Shareholder Activismmentioning

confidence: 99%

“…Overall, this study aimed at emphasizing the importance of intentions of investors for increasing shareholder activism in India, which to a large extent is dependent upon a strong legal framework, as it provides a platform, where shareholders can voice their concerns (Sharma and Sharma, 2014). As seen thus far, shareholder activism is an important measure depicting the shareholders' say in their investee company, which in turn, is instrumental in making the Board of Directors accountable for their acts (Prisandani, 2021). India's Companies Act has been revamped and thoroughly revised after 40 years to remove the redundant sections and has provided specific amendments by making way for a greater number of tools that shall help shareholders to more vociferously take up their concerns with the board.…”

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

“…However, under the Indian scenario, shareholding patterns have been scattered. Retail Investors, for instance, are not unified due to lack of any recognized forums facilitating it, thereby making it hard for the shareholders to unitedly confront the boards, especially of public listed companies to fight for their rights (Prisandani, 2021). Hence, it is necessary to understand and appreciate that the new provisions introduced in the Companies Act have the potential to increase investors' engagement in India.…”

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

“…The concept of shareholder activism as observed in the literature is more researched and documented in context of countries such as USA (Gillan and Starks, 2009), UK (Filatotchev and Dotsenko, 2015) and European countries. Countries such as Malaysia (Satkunasingam and Shanmugam, 2006; Othman and Borges, 2016), Indonesia (Beebeejaun and Koobloll, 2018) and Mauritius (Prisandani, 2021) are scarce on the topic. One reason could be attributed to scattered ownership or fewer laws facilitating the involvement of investors in company’s working.…”

Section: Literature Reviewmentioning

confidence: 99%

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Minority shareholder activism in light of the Indian companies act, 2013

Sharma¹,

Sachdeva

2022

IJLMA

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Purpose The genesis of “shareholder activism” in the USA may be traced back to several decades, but it only evolved in India at the start of the 21st century. This paper aims to explore the concept of “shareholder activism” in the Indian context, in light of the New Companies Act, 2013. The act is envisioned as a precursor to invoking the intention of shareholders to confront managers. Further, it aims to look at the possibilities of using tools of shareholder activism to make companies aware of their concerns. Design/methodology/approach Authors explore the concept of shareholder activism with the help of textual analysis, using R. Then, the authors study the mediating effects of “shareholder’s intention towards activism” between the “regulatory mechanisms” and “the usage of various tools of activism”, using the partial least square approach. Findings Regulatory mechanisms, such as the Companies Act, 2013, enhance the shareholders’ power to sensitise companies towards various corporate governance issues. It also increases their intention towards shareholder activism, eventually leading to favourable opinion on using various tools of “activism” in their investee companies. Practical implications This study is a unique attempt to assess the minority shareholders’ potential to become active in their investee companies induced by changes in the rules and regulations of a country. Originality/value Shareholder activism in India has not been thoroughly explored thus far. This paper specifically studies the opinions of retail investors, who possibly could increase companies’ accountability towards their minority shareholders, especially in light of the New Companies Act, 2013.

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Section: Tools Of Shareholder Activismmentioning

confidence: 99%

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Minority shareholder activism in light of the Indian companies act, 2013

Sharma¹,

Sachdeva

2022

IJLMA

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“…This becomes important as emerging economies are constantly evolving with a dynamic business environment which is significantly different from organizations in a developed economy. As argued earlier, business organizations do not operate in isolation, and are greatly influenced by both internal and external environment (Prisandani, 2021). Therefore, understanding the external environments of firms in emerging economies becomes important for us.…”

Section: Theoretical Contributionsmentioning

confidence: 99%

Organizational resilience through techno-structural interventions: case of an Indian wealth management firm

Hassan

Kushwaha²,

Sharma³

2022

IJLMA

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Purpose The purpose of the current study is to examine organizational crisis and the role of tech-structural interventions in overcoming the crisis to achieve resilience. Developing resilience in organizations has become imperative for managers in the never-ending turbulent environment and concerns toward pleasing the stakeholders. Organizations have begun to rely on techno-structural and human process change interventions to attain resilient organizations. Although such strategies are widely prevalent in organizational change literature and can be traced back to the 1970s, scholarly research on the process that develops resilient organizations is limited and also absent in the context of developing economies. Design/methodology/approach This study uncovered the process of change interventions (primarily techno-structural interventions) at a wealth management firm in India, adopting a case study approach. Findings According to the findings, change interventions through techno-structural interventions aided in the transformation of a precarious organization into a resilient one. Research limitations/implications This paper provides vital practical implications about the role of techno-structural change interventions in reshaping an organization into a more viable business, making the organization resilient to deal with untimely disruptions in the environment. Originality/value Very limited research has been done to understand the stakeholder’s management and resilience in the context of financial consulting firms in the emerging market context.

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