Research Suggests That Institutional Activism May Not Have a Strong

question 126

True/False

Research suggests that institutional activism may not have a strong direct effect on firm performance but may indirectly influence the targeted firm's strategic decisions, including those concerned with international diversification and innovation.

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Definitions:

Low-Ball Technique

Influence technique based on commitment, in which one first gets a person to comply with a seemingly low-cost request and only later reveals hidden additional costs.

Door-In-The-Face Technique

Influence technique based on reciprocity, in which one starts with an inflated request and then retreats to a smaller request that appears to be a concession.

Labeling Technique

Influence technique based on consistency, in which one assigns a label to an individual and then requests a favor that is consistent with the label.

Self-Fulfilling Prophecy

A forecast that, either directly or indirectly, ensures its own accuracy through a positive loop between what is believed and how one acts.