The Anatomy of Block Accumulations by Activist Shareholders
56 Pages Posted: 13 Mar 2019 Last revised: 26 Sep 2019
Date Written: February 20, 2019
We conduct a large-sample analysis of investor activism in the US based on all 13D filings from 2001 to 2016. While hedge funds represent the largest filer group, the sample contains a diverse set of other activist shareholders. This raises the question to what extent other investors perform a governance role similar to hedge funds. Based on target firms' outcome variables, like announcement returns of activist campaigns and changes in operating performance measures, we find surprisingly few differences. However, hedge funds play a special role when it comes towards takeovers. They stimulate monitoring activities among relatively larger firms and they help to set payout policies.
Keywords: Investor Activism, Activist Blockholders, Hedge Funds, Stock Ownership
JEL Classification: G30, G32
Suggested Citation: Suggested Citation