The Economist debate: This house believes that activist investors make companies better

It is hard to find a boss of a big company nowadays who isn’t worried about the potential threat of becoming the target of activist investors. Yet what is the effect of this resurgent movement of shareholder activism? Does it merely make firms boost their profits in the short run, at the expense of longer term performance? Or does it, as The Economist has argued, actually motivate management to perform better. If the latter, activist investors should be seen perhaps as a vital force, accelerating the emergence of the company of the future. This Oxford-style debate will give two teams of two the chance to convince our audience one way or the other. Speakers: Nell Minow, Vice chair, ValueEdge Advisors Andrew Shapiro, Founder, president and portfolio manager, Lawndale Capital Management Lynn Stout, Professor, Corporate and business law, Cornell University David Langstaff, Chairman, Monitor 360 Moderator: Vijay Vaitheeswaran, China business editor, The Economist

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