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To what extent is the pursuit of shareholder value and the new economy boom connected to the process of Financialization Discuss the implications of institutional investor behaviour on corporate strategy and performance - Essay Example

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Discuss the implications of institutional investor behavior on corporate strategy and performance?
To what extent is the pursuit of shareholder…
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To what extent is the pursuit of shareholder value and the new economy boom connected to the process of Financialization Discuss the implications of institutional investor behaviour on corporate strategy and performance
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Extract of sample "To what extent is the pursuit of shareholder value and the new economy boom connected to the process of Financialization Discuss the implications of institutional investor behaviour on corporate strategy and performance"

Download file to see previous pages Financialization is the process through which the influence and the services of the financial institutions increase. It means the importance of the financial institutions is increasing gradually in the economy. The performance of the companies is measured by the financial performance and that attracts the shareholders’ of the companies. The objective of the companies is to increase the wealth of the shareholders. In this changed economy, when the world has just faced the global financial crisis and the debt crisis of some countries is affecting the world economy, the researcher wants to find the relation between the shareholder value and financialization. The institutional investors generally hold a major percentage of shares of a company. Because of this, the opinion of these investors matter a lot for the company management. In this context, the researcher wants to analyze the relation of the shareholders’ value and financialization.
In the era of globalization, when the economy of a country can be affected by some other country’s economy, then the government should make it sure that the base of the economy is robust. For making the economy of a country robust, the performance of the companies of the country should be good. For making the economy strong, the government also should ensure that the financial condition of the fellow compatriots is good enough. When the financial services are available to all the people of the country, then the economic condition of the country will be good. If the product of financial sector increases then the country is there to grow. It means that the country is going towards financialization. It is also a fact that the objective of a company is to maximize the wealth of the shareholders. In the past few years the global economy has also changed, it has seen many difficulties. In this paper, the researcher ...Download file to see next pagesRead More
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