A Requiem for the USA (United Shareholders Association): Is Small Shareholder Monitoring Effective?

Posted: 29 Dec 1998

See all articles by Deon Strickland

Deon Strickland

Arizona State University (ASU) - Finance Department

Kenneth W. Wiles

affiliation not provided to SSRN

Marc Zenner

Citigroup, Inc. - Investment Banking Division

Date Written: April 1994

Abstract

From 1986 to 1993, the United Shareholders Association (USA) provided a conduit through which small atomistic shareholders could unite, and attempt to influence the governance of large US corporations. This paper describes the USA's actions and examines its impact on targeted corporations. We document that the USA targeted large firms that underperformed the market and that its influence increased from 1990 to 1993. We find that the announcement of 53 negotiated agreements is associated with a mean abnormal return of 0.9 percent, a $54 million shareholder wealth gain. Our results suggest that USA-sponsored shareholder activism has enhanced shareholder value.

JEL Classification: G34

Suggested Citation

Strickland, Deon and Wiles, Kenneth W. and Zenner, Marc, A Requiem for the USA (United Shareholders Association): Is Small Shareholder Monitoring Effective? (April 1994). Available at SSRN: https://ssrn.com/abstract=5424

Deon Strickland

Arizona State University (ASU) - Finance Department ( email )

W. P. Carey School of Business
PO Box 873906
Tempe, AZ 85287-3906
United States

HOME PAGE: http://wpcarey.asu.edu/directory/stafffaculty.cfm?cobid=2168669

Kenneth W. Wiles

affiliation not provided to SSRN

Marc Zenner (Contact Author)

Citigroup, Inc. - Investment Banking Division ( email )

Salomon Smith Barney
388 Greenwich St., 24th Flr
New York, NY 10013
United States

Register to save articles to
your library

Register

Paper statistics

Abstract Views
3,139
PlumX Metrics