We summarize and synthesize the results from 67 studies that examine the consequences of shareholder activism for targeted firms, and […]
Over the past two decades, hedge fund activism has emerged as new form of corporate governance mechanism that brings about […]
The rise of shareholder activism has become a global phenomenon. Shareholder activists are not only present–as they started–in the US, […]
“Increasingly, activists are offering more ideas about a company’s future. They often seek board seats and try to persuade management and other shareholders that their strategy for a company is superior. Even some corporate defenders say activists these days are more informed about companies and industries. Though activists remain controversial, and still sometimes push to sell a company quickly, their successes in creating value have increased shareholders’ expectations that chief executives engage with them.”
“On the whole, Mr. Icahn and his imitators help to improve corporate performance by stirring up much-needed debate about strategy and leadership, just as in democracies the government of a country is improved by the existence of an effective opposition. That is a respectable calling.”
"Perhaps the biggest recent change, say both those on offense and defense in the activism game, is the higher level of engagement between the two sides. ... Even mainstream investors — including mutual fund managers like Fidelity and BlackRock — have become more emboldened to talk to management about their concerns, at least in private. Before, representatives of these firms would have shied away from such discussions, fearing that they might lose access to senior executives. Now, though, they feel more confident about speaking their minds."
“Once viewed as fighters from the fringe who would be kept far from deal talks of two iconic companies, activist investors have won acceptance from some executives and boards, who now sometimes court their detailed analysis and thinking on decision making.”