A Survey of Shareholder Activism: Motivation and Empirical Evidence

Contemporary Finance Digest, Vol. 2, No. 3, Pp. 10-34, Autumn 1998

Posted: 20 Mar 2000

See all articles by Stuart Gillan

Stuart Gillan

University of Georgia - Department of Finance

Laura T. Starks

University of Texas at Austin - Department of Finance

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Abstract

We provide an overview of shareholder activism by institutional and individual investors. We discuss the objectives of activist shareholders, the identity of the activists, and provide a brief history of their activities. We also present a survey of the theoretical and empirical research regarding the motivations and outcomes of shareholder activism.

I. What is Shareholder Activism;

II. History of Shareholder Activism A. Early Activism B. Shareholder Activism by Institutional Investors C. Recent Developments

III. Motivation for Shareholder Activism A. Impact of a Large Shareholder B. Monitoring and Liquidity Effects C. Activism through the Proxy Process

IV. Who Gets Targeted;

V. Does Shareholder Activism Work; A. Short-term stock market reactions around the date of announcement of activism B. Voting outcomes on shareholder proposals C. Long-term Performance after the Shareholder Activism D. Changes in Other Aspects of the Target Firm E. Relationship Investing

VI. Conclusions

Note: This is a description of the article and not the actual abstract.

JEL Classification: G34

Suggested Citation

Gillan, Stuart L. and Starks, Laura T., A Survey of Shareholder Activism: Motivation and Empirical Evidence. Contemporary Finance Digest, Vol. 2, No. 3, Pp. 10-34, Autumn 1998, Available at SSRN: https://ssrn.com/abstract=211409

Stuart L. Gillan (Contact Author)

University of Georgia - Department of Finance ( email )

Terry College of Business
Athens, GA 30602-6253
United States

Laura T. Starks

University of Texas at Austin - Department of Finance ( email )

Red McCombs School of Business
Austin, TX 78712
United States
512-471-5899 (Phone)
512-471-5073 (Fax)

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