Original Research
Individual shareholder activism in South Africa: The case of Theo Botha
Journal of Economic and Financial Sciences | Vol 9, No 2 | a46 |
DOI: https://doi.org/10.4102/jef.v9i2.46
| © 2017 Suzette Viviers
| This work is licensed under CC Attribution 4.0
Submitted: 18 December 2017 | Published: 11 August 2016
Submitted: 18 December 2017 | Published: 11 August 2016
About the author(s)
Suzette Viviers, Department of Business Management, Stellenbosch University, South AfricaFull Text:
PDF (689KB)Abstract
Shareholder activists play a key role in monitoring managerial behaviour. This study was undertaken given the paucity of research on the shareholder activism as practised by individual shareholders. Accordingly, the motives, modus operandi and sources of salience of Mr Theo Botha, a well-known shareholder activist in South Africa, were investigated. Document analysis and an in-depth interview conducted with Botha revealed that he not only has a clear goal, but is also very passionate about achieving his goal. Botha prepares meticulously before engaging companies across the economic spectrum. In addition to possessing normative power, Botha also exhibits individual, pragmatic and societal legitimacy. His assertiveness, persistence and willingness to apply his own resources significantly contribute to his prominence as a corporate watchdog. Shareholder activists who wish to become more salient (irrespective of their size) could learn from Botha’s experiences over the past decade.
Keywords
Board diversity; Gender diversity; Race diversity; Accounting-based financial performance; Market-based financial performance; Shareholder activism; shareholder engagement; corporate governance; shareholder salience; normative power; individual legitimacy
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