Activism

Working Paper

The Wall Street Stampede: Exit as Governance with Interacting Blockholders

In firms with multiple blockholders governance via exit is affected by how blockholders react to each others' exit. Institutional investors, who hold the majority of equity blocks, are heterogeneous in their incentives. How do these incentives...Read more

Amil Dasgupta
Konstantinos Zachariadis
22 October 2019

Do Index Funds Monitor?

Passively managed index funds now hold over 25% of U.S. mutual fund and ETF assets. The rise of index investing raises fundamental questions about monitoring and corporate governance. We show that, relative to active funds, index funds are less...Read more

Davidson Heath
Daniele Macciocchi
Roni Michaely
Matthew C. Ringgenberg
20 November 2019

The Advisory and Monitoring Roles of the Board - Evidence From Disruptive Events

We study the contribution of directors to firm resilience by assessing the relative importance of their advisory and monitoring roles at times of crisis. Based on manually collected US data, we document that four bord-related variables affect...Read more

Ettore Croci
Gérard Hertig
Layla Khoja
Luh Luh Lan
24 April 2020

ESG Shareholder Engagement and Downside Risk

We examine whether engagement on environmental, social and governance (ESG) issues can benefit shareholders by reducing firms’ downside risk, measured using the lower partial moment and value at risk. Using a proprietary database, we provide...Read more

Andreas G.F. Hoepner
Ioannis Oikonomou
Zacharias Sautner
Laura Starks
Xiao Y. Zhou
16 April 2020

Managerial Response to Shareholder Empowerment: Evidence from Majority Voting Legislation Changes

This paper studies how managers react to shareholder empowerment vis-à-vis governance provisions. We show that a staggered legislative change that increases noncompliance costs in the implementation of shareholder-initiated majority voting...Read more

Vicente Cuñat
Yiqing Lü
Hong Wu
08 August 2019

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