Managerial Activism

57 Pages Posted: 15 May 2019 Last revised: 9 Dec 2020

See all articles by Senay Agca

Senay Agca

George Washington University - School of Business, Department of Finance

Asli Togan Egrican

Kadir Has University

Date Written: December 8, 2020


We look at managerial activism through collective action in the corporate sector. Activist managers spend considerable resources on lobbying, lawsuits and public statements to pursue pro-business as well as pro-manager issues. While managerial activism is valuable in following pro-business policies and strategies, pro-manager agendas may exacerbate agency problems. We find evidence more towards the pro-business role of managerial activism. Specifically, firm performance improves with managerial activism, and this improvement is observed primarily in firms that are government dependent, produce differentiated products, operate in concentrated industries or have more intangible assets. While corporate governance and corporate social responsibility of firms with activist managers is mostly comparable to other firms, firms with activist managers have better diversity in their workforce and boards. Overall, managerial activism adds value to firms, especially when information dissemination is more essential due to firm characteristics.

Keywords: Corporate Governance, Managerial Activism, CEO Compensation, Firm Performance, Corporate Social Responsibility

JEL Classification: G14, G18, G34, G38, D7

Suggested Citation

Agca, Senay and Togan Egrican, Asli, Managerial Activism (December 8, 2020). Available at SSRN: or

Senay Agca (Contact Author)

George Washington University - School of Business, Department of Finance ( email )

2201 G Street
Funger Hall 505
Washington, DC 20052
United States
202-994-9209 (Phone)
202-994-5014 (Fax)


Asli Togan Egrican

Kadir Has University ( email )

Faculty of Economics and Administrative Sciences
5347312433 (Phone)


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