Final answer:
Institutional investors increase their influence over management through shareholder activism.
Step-by-step explanation:
Institutional investors have attempted to increase their influence over management because the alternative of Shareholder activism. Shareholder activism refers to when shareholders actively exercise their rights as owners of a company to influence its management and decision-making. This can include actions such as proposing resolutions, engaging in proxy battles, or advocating for corporate governance reforms.
Shareholder activism is often seen as a means for institutional investors, such as pension funds or mutual funds, to hold management accountable for their actions and to promote changes that align with the best interests of shareholders. By actively participating in the governance of a company, institutional investors aim to enhance shareholder value and improve long-term company performance.