Ever since the beginning of 21st century, a new shareholder’s breed has come into emergence known as activist investors who have since their emergence played a role in decision making for organizations involved in the market. The activist approach has in a dynamic manner caused pressure to develop over corporate executives and board managements. Almost across all businesses, one or the other company is targeted by these activist investors by organizing activist campaigns in order to buy stocks in the market which are viewed by them as below value and cause a pressure to be laid on the management for doing those functional activities that they think will help in increasing the stock value, for example by giving extra cash back for the shareholders which activist investors think are driving the stock price to reduce. Slowly and gradually, their frequency of intervention increases pressuring the boards and CEOs to either replace their system or merge or diverse into new ones(Bebchuk et al, 2013). The issue of activist investors from this perspective is evident because the pressure laid on corporates leads them to take more debts in the industry causing the organization to be under debt whereas the shareholders consistently keep gaining profit.