Does Shareholder Activism Create Value? A Meta-Analysis

Arbeitspapier

We conduct a meta-analysis of 1,973 estimates of stock price responses to shareholder activism reported in 67 primary studies. We document publication bias in the literature. Corrected activism effects range from 0% to 1.5%. Effects are stronger when shareholder rights are better protected and when stock markets are smaller. Markets respond more positively to activism by individual investors, confrontational activism, and activism aimed at company sale. Estimates based on longer periods, simpler risk-adjustment approaches, more recent and longer datasets, as well as those published in more reputable journals tend to be larger.

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• Language: Englisch

Classification and Topics

• Classification: Wirtschaft ; Information and Market Efficiency; Event Studies; Insider Trading ; Corporate Finance and Governance: General ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Firm Objectives, Organization, and Behavior: General
• Subject: shareholder activism ; price response ; value created ; meta-analysis ; publication bias ; model averaging

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bajzik, Josef ; Havranek, Tomas ; Irsova, Zuzana ; Novak, Jiri
• Event: Veröffentlichung
• (who): ZBW - Leibniz Information Centre for Economics
• (where): Kiel, Hamburg
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/272232