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Shareholders and falling corporate performance. [iStockphoto]
Shareholders are frequently portrayed as victims when public companies collapse, blamed on poor management or bad markets, but this tells only half the story.
The narrative is familiar: poor management, weak boards, government interference, or unfavourable markets. Yet, shareholders themselves are frequently active contributors to the decline of the very companies that they own.
In Kenya, this reality is particularly evident with shareholders very eager to invest. The popular mantra of “let your money work for you” is deeply ingrained.
