The Dark Side Of Shareholder Activism PDF Download
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| Author | : Laurent Bach |
| Publisher | : |
| Total Pages | : |
| Release | : 2015 |
| Genre | : |
| ISBN | : |
Download The Dark Side of Shareholder Activism Book in PDF, ePub and Kindle
Strong corporate governance may bear some costs to shareholders when it leads to the departure of value-enhancing CEOs out of disagreement with the board. We test this hypothesis using the passing of shareholder proposals related to anti-takeover provisions in closely contested votes as a natural experiment. We measure the quality of a CEO departure by the cumulative abnormal returns observed around the announcement of such an event. We find that the approval of such proposals by general assemblies very significantly increases the likelihood that the current CEO leaves at the expense of firm value. Moreover, CEO departures provoked by stronger governance are not followed by an improvement in operating performance. We interpret this as evidence that the indiscriminate lifting of anti-takeover provisions is detrimental to shareholder value due to its adverse impact on the allocation of CEOs to firms.
| Author | : Yamin Zeng |
| Publisher | : |
| Total Pages | : 35 |
| Release | : 2009 |
| Genre | : |
| ISBN | : |
Download The Dark Side of Institutional Shareholders Activism in Emerging Markets Book in PDF, ePub and Kindle
The study aims to analyze the role of institutional investors in mediating the interest conflicts between blockholders and minority shareholders in emerging markets. China's Non-tradable Share Reform provides us a perfect research environment. Before the reform, the ownership of Chinese public firms was concentrated in one or several blockholders. This part of block shares was non-tradable, and tradable shares were held by minority shareholders and institutional investors like mutual funds. Chinese government launched Non-tradable Share Reform in 2005, giving non-tradable shares liquidity rights. At the same time, non-tradable share owners had to compensate tradable share owners, such as offering a certain percentage of shares to them. The compensation schemes were advanced by non-tradable share owners and must be supported by two-thirds of votes cast by tradable share owners. Our study finds that institutional investors did actively participate in voting, but their number and holdings were reversely related with the compensation level. Our results suggest that institutional investors played shareholder activism in this reform, but their activism served for blockholder's interests rather than minority shareholders'
| Author | : Massimo Belcredi |
| Publisher | : |
| Total Pages | : 49 |
| Release | : 2014 |
| Genre | : |
| ISBN | : |
Download Institutional Investor Activism in a Context of Concentrated Ownership and High Private Benefits of Control Book in PDF, ePub and Kindle
This is a draft chapter for a forthcoming volume, The Research Handbook on Shareholder Power, edited by Randall Thomas and Jennifer Hill (Cheltenham:Edward Elgar). This chapter describes the experience with activist institutional investors in an apparently unfavorable corporate environment (Italy), commonly depicted as one of concentrated ownership, notoriously inadequate legal protection for minority shareholders and an apparent disregard for their interests by controlling shareholders. We document a non-negligible volume of “core” active institutional investment, together with some idiosyncratic forms of activism (the appointment of “minority” directors on the boards of Italian listed companies). We attempt to evaluate whether what we see is genuine shareholder-value oriented activism or a strategy to engage in a privileged relationship with controlling shareholders, in order to share in private benefits of control extraction. We find no sufficient evidence to support a “dark side” view of shareholder activism, at least as a general explanation. Instead, we provide recent anecdotal evidence of initiatives effectively aimed to curb the extraction of private benefits by dominant shareholders.
| Author | : Iris H-Y Chiu |
| Publisher | : Bloomsbury Publishing |
| Total Pages | : 204 |
| Release | : 2010-10-12 |
| Genre | : Law |
| ISBN | : 1847316042 |
Download The Foundations and Anatomy of Shareholder Activism Book in PDF, ePub and Kindle
The Foundations and Anatomy of Shareholder Activism examines the landscape of contemporary shareholder activism in the UK. The book focuses on minority shareholder activism in publicly listed companies. It argues that contemporary shareholder activism in the UK is dominated by two groups; one, the institutional shareholders whose shareholder activism is largely seen as a driving force for good corporate governance, and two, the hedge funds whose shareholder activism is based on value extraction and exit. The book provides a detailed examination of both types of shareholder activism, and discusses critically the nature of, motivations for and consequences following both types of shareholder activism. The book then locates both types of shareholder activism in the theory of the company and the fabric of company law, and argues that institutional shareholder activism based on exercising a voice at general meetings is well supported in theory and law. The call for institutions to engage in more informal forms of activism in the name of 'stewardship' may bring about challenges to the current patterns of activism that institutions engage in. The book argues, however, that a more cautious view of hedge fund activism and the pattern of value extraction and exit should be taken. More empirical evidence is likely to be necessary, however, to weigh up the long terms benefits and costs of hedge fund activism.
| Author | : Afra Afsharipour |
| Publisher | : Edward Elgar Publishing |
| Total Pages | : 544 |
| Release | : 2021-06-25 |
| Genre | : Law |
| ISBN | : 1788975332 |
Download Comparative Corporate Governance Book in PDF, ePub and Kindle
This research handbook provides a state-of-the-art perspective on how corporate governance differs between countries around the world. It covers highly topical issues including corporate purpose, corporate social responsibility and shareholder activism.
| Author | : Dionysia Katelouzou |
| Publisher | : |
| Total Pages | : |
| Release | : 2013 |
| Genre | : |
| ISBN | : |
Download Hedge Fund Activism, Corporate Governance and Corporate Law Book in PDF, ePub and Kindle
This study investigates the brand of shareholder activism hedge funds deploy by reference to a unique hand-collected dataset of 11 years' activist hedge funds' campaigns across 25 countries. The analysis has two core elements, one of which is to chart the emergence of hedge fund activism outside the United States and the other being to account why hedge fund activism has developed differently across the sample countries. Both issues have been to date only tangentially explored. This study is the first one to seek to determine the extent to which corporate law is a determinant of the hedge fund activism phenomenon using a fresh approach which combines theoretical and comparative legal analysis with empirical methods. While a single variable is unlikely to account for the emergence of hedge fund activism, the study describes hedge fund activism as a game of three sequential stages as a heuristic device and identifies market and legal parameters for each stage. To test the hypotheses advanced for the emergence of hedge fund the study draws upon the law and finance literature. For instance, to account to what extent the rights bestowed on shareholders by corporate law influence hedge fund activism the study uses the CBR shareholder rights index. The results indicate that the extent to which law matters depends on the stage which activism has reached. The study also puts hedge fund activism in its corporate governance context. Activist hedge funds' interventions have been envisioned as a mechanism for ensuring effective control of managerial discretion. Opponents of hedge fund activism contend, however, that this new breed of activists has a dark side that raises various concerns. Activist hedge funds have been considered: as exacerbating short-termism; as being mainly aggressive to the incumbents; as bearing similarities to the 1980s-raiders; and as engaging in distorting equity decoupling techniques. The study presents new empirical data that shows that the perceived negative side-effects of hedge funds activism are greatly exaggerated: they are myths. Cumulatively, these findings question whether hedge fund activism warrants any type of legislative response so far as the goal of shareholder value maximization is succeeded.
| Author | : Bo Gong |
| Publisher | : Routledge |
| Total Pages | : 308 |
| Release | : 2013-12-13 |
| Genre | : Law |
| ISBN | : 113601568X |
Download Understanding Institutional Shareholder Activism Book in PDF, ePub and Kindle
Institutional shareholder participation has long been considered as vital to good corporate governance yet its potential does not seem to have been realized. The recent banking crisis exposed the passivity of some institutional shareholders, many of whom appear to have chosen to sell their stakes in the banks rather than intervene or challenge the board when they realized the strategies followed by the banks were excessively risky. Institutional shareholders’ role to scrutinize and monitor the decisions of boards and executive management in the banking sector in the UK is considered by many to be a failure, resulting in the phenomenon of ‘ownerless corporations’, as described by Lord Myners. In China, despite the fast rising of institutional investment in the securities market, institutional shareholders have not yet played a contributory role in monitoring corporate managers in listed companies. Drawing on empirical evidence this book seeks to systematically analyses institutional shareholders’ incentives to activism to explain when and why shareholder activism will occur. The book puts forward a model which explains the factors that determine institutional shareholders’ propensity for activism. The model both elaborates the collective benefits of activism as a means of achieving managerial accountability asks whether and when shareholder activism is rational for any individual shareholder. The book then goes to on to apply these finding to both the UK and China in order to explain the varying levels of shareholder activism in each jurisdiction. The book is the first to take an in-depth look at institutional share-holder activism in China providing prescriptions to promote greater shareholder engagement and exploring the potential it holds for improving corporate governance in the region.
| Author | : Ekrem Solak |
| Publisher | : Routledge |
| Total Pages | : 237 |
| Release | : 2020-05-04 |
| Genre | : Law |
| ISBN | : 1000069745 |
Download Shareholder Activism and the Law Book in PDF, ePub and Kindle
This book provides a complete framework for contemporary shareholder activism and its implications for US corporate governance, which is based on director primacy theory. Under director primacy theory, shareholders do not wish to be involved in the management of the company; in the rare event that they wish to be involved, it is considered a transfer of power from the board of directors to shareholders, which in turn reduces the efficiency of centralised decision-making in public companies. However, this book demonstrates that shareholders do not use their power to transfer corporate control from the board to themselves, and that some form of shareholder activism is even collaborative, which is a new paradigm for US corporate governance. This book shows that while monitoring remains a key contribution of shareholders, they also bring new informational inputs to corporate decision-making that could not be obtained under the traditional board model. Accordingly, contemporary shareholder activism enhances the board’s decision-making and monitoring capacity, without undermining the economic value of the board's authority. Therefore, this book argues that the complete approach of contemporary shareholder activism should be accommodated into US corporate governance. In doing so, this book considers not only legal and regulatory developments in the wake of the 2007–2008 financial crisis, but also the governance developments through by-law amendments. Furthermore, the author makes several recommendations to soften the current director primacy model: establishing a level playing field for private ordering, adopting the proxy access default regime, the majority voting rule, the universal proxy rules, and enhancing the disclosure requirements of shareholders. The book will be of interest to academics and students of corporate governance, both in the US and internationally.
| Author | : Alon Brav |
| Publisher | : Now Publishers Inc |
| Total Pages | : 76 |
| Release | : 2010 |
| Genre | : Business & Economics |
| ISBN | : 1601983387 |
Download Hedge Fund Activism Book in PDF, ePub and Kindle
Hedge Fund Activism begins with a brief outline of the research literature and describes datasets on hedge fund activism.
| Author | : Angeline Close Scheinbaum |
| Publisher | : Routledge |
| Total Pages | : 248 |
| Release | : 2017-09-14 |
| Genre | : Psychology |
| ISBN | : 1351683810 |
Download The Dark Side of Social Media Book in PDF, ePub and Kindle
The Dark Side of Social Media takes a consumer psychology perspective to online consumer behavior in the context of social media, focusing on concerns for consumers, organizations, and brands. Using the concepts of digital drama and digital over-engagement, established as well as emerging scholars in marketing, advertising, and communications present research on some unintended consequences of social media including body shaming, online fraud, cyberbullying, online brand protests, social media addiction, privacy, and revenge pornography. It is a must-read for scholars, practitioners, and students interested in consumer psychology, consumer behavior, social media, advertising, marketing, sociology, science and technology management, public relations, and communication.
