Wolf Pack Activism

Wolf Pack Activism

Alon Brav, Amil Dasgupta, Richmond Mathews

Series number :

Serial Number: 

Date posted :

April 01 2017

Last revised :

April 05 2017
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  • Corporate governance; blockholder monitoring; institutional investors; reputation concerns; strategic complementarity

Blockholder monitoring is key to corporate governance, but blockholders large enough to exercise significant unilateral influence are rare. Mechanisms that enable small blockholders to exert collective influence are therefore important.

It is alleged that institutional blockholders sometimes implicitly coordinate their interventions, with one acting as “lead” activist and others as periphera l”wolf pack” members. We present a model of wolf pack activism. Our model formalizes a key source of complementarity across the engagement strategies of activists and highlights the catalytic role played by the leader. We also characterize share acquisition in pack formation, providing testable implications on ownership and price dynamics.


Real name: 
Research Member
Fuqua School of Business, Duke University
Real name:
Richmond Mathews