Authors

Randall Thomas

Document Type

Article

Publication Title

Arizona Law Review

Publication Date

1996

ISSN

0004-153X

Page Number

331

Keywords

corporate law, shareholder monitoring, equity ownership, access to information

Disciplines

Commercial Law | Law

Abstract

A central issue in contemporary corporate law is the effectiveness of shareholders as monitors of corporate management. For example, in a series of recent articles, legal scholars have debated whether the rapid growth in the equity ownership positions of institutional investors, the relative stability of their shareholdings in each company, and their increased activism in corporate governance matters, will lead to better monitoring by shareholders and improved corporate performance. However, two predicates to effective shareholder monitoring are that dispersed investors have information about the companies they invest in and that they can communicate this information to other investors so that they can act collectively.

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