Journal article
Does Coordinated Institutional Investor Activism Reverse the Fortunes of Underperforming Firms?
Journal of financial and quantitative analysis, v 38(2), pp 317-336
Jun 2003
Abstract
We investigate the impact of Focus Listing by the Council of Institutional Investors on targeting poorly performing firms. Post-listing stock returns for the targeted firms differ insignificantly from those of a suitable benchmark group. Institutional investors increase their holdings of targeted firms, but not by more than those of the benchmark firms. Similarly, though analysts revise earnings forecasts up for Focus Listed firms, they do so well after the listing event and positive revisions are no greater than the benchmark group. Moreover, there appears to be little difference between Focus List and benchmark firms in the incidence of post-listing events such as mergers and stock repurchases. Overall, we find very little evidence of the efficacy of shareholder activism.
Metrics
Details
- Title
- Does Coordinated Institutional Investor Activism Reverse the Fortunes of Underperforming Firms?
- Creators
- Wei-Ling Song - Drexel UniversitySamuel H. Szewczyk - Drexel University
- Publication Details
- Journal of financial and quantitative analysis, v 38(2), pp 317-336
- Publisher
- Cambridge University Press
- Number of pages
- 20
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:000183357000004
- Scopus ID
- 2-s2.0-0038464590
- Other Identifier
- 991019167619404721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Web of Science research areas
- Business, Finance
- Economics