We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Does Coordinated Institutional Investor Activism Reverse the Fortunes of Underperforming Firms?
- Authors
Wei-Ling Song; Szewczyk, Samuel H.
- 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.
- Subjects
STOCK prices; INVESTMENT analysis; INSTITUTIONAL investments; BENCHMARKING (Management); INDUSTRY classification; VALUATION of corporations
- Publication
Journal of Financial & Quantitative Analysis, 2003, Vol 38, Issue 2, p317
- ISSN
0022-1090
- Publication type
Article
- DOI
10.2307/4126753