Role of Institutional Investors in Corporate Governance

Abstract

This paper deals with institutional investor activism in the corporate governance of a company. Institutional investors, are becoming an integral part in monitoring the corporate governance of a company. However, there are certain factors which influences the extent of investor activism. These factors have been analysed in this paper. The position as regards institutional investor activism is compared between India and the United States. This paper aims to establish a case for institutional investor activism though there has been opposition to it. It also lists down the suggestions to improve institutional investor activism with relation to corporate governance.