Implications of Investor Behaviour on Corporate Strategy and Performance Free Essay Example, 2000 words

It is evidently clear from the discussion that investors can have a critical role in the development of corporate strategies. In fact, they are the investors that decide on all the critical issues that a corporation has to face. The increased power of investors within modern corporations has been explained using the following arguments: a) investors have key interests on their corporation; their participation in the key corporate decisions should be regarded as quite satisfied since they are their interests that are in risk. However, this view could be opposed as follows: investors are not the only individuals who have interests on a particular corporation; employees, customers, suppliers and even the state have interests on the relevant corporation (in the context of their role as stakeholders). For this reason, all the above persons should also have access along with the investors to the meetings involved in key strategic decisions (Morgan et al. 2010), b) through another point of view, corporation, as any other organization, needs to be governed in accordance with a specific strategy; the application of the corporate mission and aims as included in the corporate mission statement needs to be closely monitored on a continuous basis. We will write a custom essay sample on Implications of Investor Behaviour on Corporate Strategy and Performance or any topic specifically for you Only $17.96 $11.86/pageorder now Investors should have the role of the control of the corporation ensuring that all key strategic targets are effectively pursued (Orhangazi, 2008). It is in this context that key corporate decisions are set for verification by the meeting of shareholders, a term commonly included in the memorandum of association. Despite the above issues, it could be noted that the involvement of investors in corporate strategy can have important implications. At the first level, investors are individuals and can be influenced by their personal perceptions. This means that when being asked to participate in the development of a critical corporate decision, investors are expected to express their view, as being aligned with their perceptions on the issues under discussion.