In today's business world, this type of investor group, which includes investors such as banks, insurance companies and pension funds, owns the majority of shares and therefore is able to exercise influence on managers and often act as lobbyists for investors (Brigham & Houston, 2011). Institutional investors have fiduciary responsibilities that provide them with strong reasons to make corporate governance increasingly important in investment decisions, and are often the motivation for their shareholder activism (Chung & Zhang, 2011). Institutional owners, as part of their monitoring role, can sponsor proposals to be voted on at shareholder meetings, without needing management support. Since the passage of the Dodd Frank Act, owners also have the right to appoint directors to the company's board of directors and to vote on the approval of executive compensation structures (Brigham & Houston, 2011). While the results are non-binding, these investor monitoring activities send a clear message to management. The best form of monitoring that includes academic support