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Ali Kakhbod

Ali Kakhbod

Institution

UC Berkeley

PhD Year

2021

FTG Membership

Member

Website

http://www.akakhbod.com/

Featured Work

Advising the Management: A Theory of Shareholder Engagement

Jun 6, 2025

Ali Kakhbod, Uliana Loginova, Andrey Malenko, Nadya Malenko

We study the effectiveness of shareholder engagement, that is, shareholders communicating their views to management. When shareholders and management have different beliefs, each shareholder engages more effectively when other shareholders engage as well. A limited shareholder base can thus prevent effective engagement. However, a limited shareholder base naturally arises under heterogeneous beliefs because investors who most disagree with management do not become shareholders. Passive funds,...