A critical analysis of the effectiveness of shareholder activism and stewardship in Zimbabwe`s State Owned Enterprises

Abstract

The research sought to assess the critical analysis of the effectiveness of shareholder activism and stewardship in Zimbabwe`s State Owned Enterprises. The objectives of the research comprised to explore the influence of shareholder activism on performance of state owned enterprises; to explore the influence of stewardship on performance of state owned enterprises ; to examine the effectiveness of shareholder activisms and stewardship of state owned enterprises; to explore how shareholder activism and stewardship influence decision making by top management and to make strategic recommendations.The researcher used stratified random and simple random sampling and managed to sample 116 respondents to be used in the research. The sample was selected from a population of 312 in State owned enterprises in Zimbabwe. Questionnaires were used to collect data from the respondents and the researcher concluded and came up with recommendations. The researcher concluded that there was poor communication policy with shareholders and or inadequate disclosures made in SOEs reports is a challenge affecting shareholder activism. The researcher concluded that shareholder activism and stewardship influence decision making by top management of SOEs in Zimbabwe. The researcher recommends that the SOEs to improve communication of information so a enhance performance. The researcher also recommended the management of SOEs should take proactive measures that so companies it as an evaluation of their corporate governance structure and practices and then a shoring-up of any weaknesses.