A Study of the Impact of Shareholder Activism on Corporate Governance Structure: An Example of Elon Musk's Acquisition of Twitter

Yuxuan He, Zhiwen Lyu

2024

Abstract

In modern corporate governance, the rise of shareholder activism has had a profound impact on corporate strategy and management models. The case of Elon Musk's acquisition of Twitter is particularly striking, as Musk's acquisition of Twitter in his personal capacity triggered a wide-ranging debate on corporate governance, shareholder rights and corporate responsibility, demonstrating how shareholder activism can reshape corporate governance structures. This paper analyses the changes Musk made to the board of directors, governance policies and stakeholders following his acquisition of Twitter, and the changes Musk's acquisition of Twitter made to the corporate governance structure in the context of corporate governance impacts, market reaction and long-term financial performance. It is concluded that shareholder activism not only directly changes the ownership structure of a company, but also profoundly affects the management style, corporate culture and strategic direction of the company. At the same time, such active participation brings greater risk and uncertainty.

Paper Citation

in Harvard Style

He Y. and Lyu Z. (2024). A Study of the Impact of Shareholder Activism on Corporate Governance Structure: An Example of Elon Musk's Acquisition of Twitter. In Proceedings of the 1st International Conference on E-commerce and Artificial Intelligence - Volume 1: ECAI; ISBN 978-989-758-726-9, SciTePress, pages 601-605. DOI: 10.5220/0013271400004568

in Bibtex Style

@conference{ecai24,
author={Yuxuan He and Zhiwen Lyu},
title={A Study of the Impact of Shareholder Activism on Corporate Governance Structure: An Example of Elon Musk's Acquisition of Twitter},
booktitle={Proceedings of the 1st International Conference on E-commerce and Artificial Intelligence - Volume 1: ECAI},
year={2024},
pages={601-605},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013271400004568},
isbn={978-989-758-726-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on E-commerce and Artificial Intelligence - Volume 1: ECAI
TI - A Study of the Impact of Shareholder Activism on Corporate Governance Structure: An Example of Elon Musk's Acquisition of Twitter
SN - 978-989-758-726-9
AU - He Y.
AU - Lyu Z.
PY - 2024
SP - 601
EP - 605
DO - 10.5220/0013271400004568
PB - SciTePress