Coordinated Engagements

We study coordinated engagements by a prominent international network of long-term shareholders cooperating to influence firms on environmental and social issues. A two-tier engagement strategy, combining lead investors with supporting investors, is effective in successfully achieving engagement goals, and is followed by improved target performance and increased investor fund flows. An investor is more likely to lead the collaboration when it has higher stakes in and exposure to the target, and when the target is geographically and/or culturally closer. Success rates are elevated when lead investors are domestic, and when more coalition investors are from countries with high social norms.