Coordinated Engagements

58 Pages Posted: 26 Jul 2018 Last revised: 26 Dec 2018

See all articles by Elroy Dimson

Elroy Dimson

University of Cambridge - Judge Business School; London Business School

Oğuzhan Karakaş

Cambridge Judge Business School - Finance Subject Group

Xi Li

London School of Economics

Date Written: December 24, 2018

Abstract

We study the nature of and outcomes from coordinated engagements by a prominent international network of shareholder activists cooperating to influence firms on environmental and social issues. We find a two-tier engagement strategy, combining lead active investors with supporting investors, is effective in successfully achieving the stated engagement goals and subsequently improving target performance. An activist is more likely to lead the collaborative dialogue when its stake in the target firm is higher and when the target is domestic. Success rates are elevated when the lead investors are domestic, supporting investors are international, and the investor coalition is influential.

Keywords: engagement, dialogue, activism, collaboration, coordination, corporate social responsibility (CSR), environmental social and governance (ESG), socially responsible investing (SRI)

JEL Classification: G15, G23, G32, G34, G39

Suggested Citation

Dimson, Elroy and Karakaş, Oğuzhan and Li, Xi, Coordinated Engagements (December 24, 2018). Available at SSRN: https://ssrn.com/abstract=3209072 or http://dx.doi.org/10.2139/ssrn.3209072

Elroy Dimson (Contact Author)

University of Cambridge - Judge Business School ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom
+44 700 607 7390 (Fax)

London Business School ( email )

Sussex Place
Regent's Park
London, NW1 4SA
United Kingdom
44 20 7000 7000 (Phone)
44 700 607 7390 (Fax)

Oğuzhan Karakaş

Cambridge Judge Business School - Finance Subject Group ( email )

University of Cambridge
Trumpington St.
Cambridge, CB2 1AG
United Kingdom

Xi Li

London School of Economics ( email )

Department of Accounting
Houghton Street
London, WC2A 2AE
United Kingdom

HOME PAGE: http://www.lse.ac.uk/accounting/people/xi-li

Register to save articles to
your library

Register

Paper statistics

Downloads
317
rank
92,722
Abstract Views
1,929
PlumX Metrics