Institutional investors see more activism, but question its long-term value

Singapore

SHAREHOLDER activism is on the rise, but it could compromise long-term value creation, institutional investors said in a global poll by public relations company MSL Group.

Investors are placing more weight on companies' ability to meet earnings expectations, and view management quality and a company's corporate strategy as key factors in valuing an investment, according to the survey of 500 institutional investors and sell-side analysts around the world.

About 77 per cent of respondents agreed with the statement that shareholder activism will rise in the next three years, and 76 per cent agreed that it will expand outside the United States to b…