Influences of Efficiency on Shareholder Activism using ROA as a moderator?

The effect of efficiency on shareholder activism (SHA) with the moderating effect of Return on Assets (ROA) has been studied by this research study. This analysis uses data about corporate firms from the CMIE Prowess database. This data spans over 4 years from 2016 to 2020. Static panel data are used to propose the two models (base model and the interaction model). The application of PDR models from this study shows that Efficiency impacts SHA negatively. The influences of efficiency on shareholder activism are multifaceted and dynamic. The association of shareholder activism and the efficiency of the organization is not significantly influenced by the moderating variable which is the return on assets for the selected dataset of this study. As the chosen data represents a significant segment of the Indian corporate landscape, this study offers a better understanding of how efficiency relates to SHA within corporates in the Indian context. The results of this study can provide guidelines for strategy preparations to proactively demeanor the issues of shareholder activism in the context of fast fast-changing technology landscape and its use by new age activist.