Coordinated Engagements

85 Pages Posted: 26 Jul 2018 Last revised: 3 May 2023

See all articles by Elroy Dimson

Elroy Dimson

University of Cambridge - Judge Business School; European Corporate Governance Institute (ECGI)

Oğuzhan Karakaş

Cambridge Judge Business School - Finance Subject Group; European Corporate Governance Institute (ECGI)

Xi Li

London School of Economics

Date Written: April 27, 2023

Abstract

We study coordinated engagements by a prominent international network of long-term shareholders cooperating to influence firms on environmental and social issues. A two-tier engagement strategy, combining lead investors with supporting investors, is effective in successfully achieving engagement goals, and is followed by improved target performance and increased investor fund flows. An investor is more likely to lead the collaboration when it has higher stakes in and exposure to the target, and when the target is geographically and/or culturally closer. Success rates are elevated when lead investors are domestic, and when more coalition investors are from countries with high social norms.

Keywords: Engagement, dialogue, collaboration, coordination, leadership, 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 (April 27, 2023). European Corporate Governance Institute – Finance Working Paper No. 721/2021, 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)

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Oğuzhan Karakaş

Cambridge Judge Business School - Finance Subject Group ( email )

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

HOME PAGE: http://jbs.cam.ac.uk/faculty-research/faculty-a-z/oguzhan-karakas/

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

HOME PAGE: http://ecgi.global/users/o%C4%9Fuzhan-karaka%C5%9F

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

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