When shareholder activists attack a company, its rivals may feel the heat too and change their ways

When companies are hit by activists, managers of competitors may fear that their company’s reputation would suffer if their turn comes next.

By: Hadi Shaheen, College of Charleston; J.H. John Kim, College of Charleston, and Kamyar Goudarzi, College of Charleston, The Conversation

Outlets: The Conversation

Published: July 7, 2026

Words: 1,408

Last Updated: 2 weeks ago

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By Hadi Shaheen, College of Charleston; J.H. John Kim, College of Charleston, and Kamyar Goudarzi, College of Charleston

Shareholder activists are investors who leverage their ownership in a company to push for change.

When those activists target a company, they usually want managers to change strategy, cut costs, improve performance or address issues such as climate change and worker rights. If managers resist, activists may seek board seats, call for leadership changes or criticize the …

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