The costs of shareholder activism: Evidence from a sequential decision model

被引:133
|
作者
Gantchev, Nickolay [1 ]
机构
[1] Univ N Carolina, Kenan Flagler Business Sch, Chapel Hill, NC 27515 USA
关键词
Shareholder activism; Hedge funds; Institutional investors; Monitoring; Corporate governance; HEDGE FUNDS; CORPORATE GOVERNANCE;
D O I
10.1016/j.jfineco.2012.09.007
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
This paper provides benchmarks for monitoring costs and evaluates the net returns to shareholder activism. I model activism as a sequential decision process consisting of demand negotiations, board representation, and proxy contest and estimate the costs of each activism stage. A campaign ending in a proxy fight has average costs of $10.71 million. I find that the estimated monitoring costs reduce activist returns by more than two-thirds. The mean net activist return is close to zero but the top quartile of activists earns higher returns on their activist holdings than on their non-activist investments. The large-sample evidence presented in this paper aids in understanding the nature and evolution of activist engagements. (C) Elsevier B.V. All rights reserved.
引用
收藏
页码:610 / 631
页数:22
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