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

Multiple version iconThere are 2 versions of this paper

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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