The Power of Shareholder Activism. A Force for Change in Corporate Governance?

Focusing on shareholder activism, this master's thesis examines its effectiveness as a governance mechanism. It explores the definitions, historical development, and various forms of activism while addressing challenges such as the free rider problem and agency conflicts. The work also analyzes motivations behind shareholder activism, including economic incentives, moral considerations, and the rising impact of Environmental, Social, and Governance (ESG) factors. Through this comprehensive investigation, the thesis aims to enhance understanding of the complexities surrounding shareholder engagement.