Search Results

Showing results 1 to 2 of approximately 2.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:activism 

Discussion Paper
Leader-Follower Dynamics in Shareholder Activism

Activist shareholders play a central role in modern corporations, influencing the capital structure, business strategy, and governance of firms. Such “blockholders” range from investors who actively jawbone or break up firms to index funds that are largely passive in that they limit themselves to voting. In between, however, is a key group of blockholders that have historically focused on trading but have embraced activism as an established business strategy in the past few decades. Campaigns involving such “trading” blockholders have become ubiquitous, increasingly targeting ...
Liberty Street Economics , Paper 20230906

Report
Leader-Follower Dynamics in Shareholder Activism

Motivated by the rise of hedge fund activism, we consider a leader blockholder and a follower counterpart who first trade in sequence to build their blocks and then intervene in a firm. With endogenous fundamentals and steering dynamics, the leader ceases to trade in an unpredictable way: she buys or sells to induce the follower to acquire a larger block and thus spend more resources to improve firm value. Key is that the activists have correlated private information—initial blocks, firms' fundamentals, or their own productivity—so that prices either overreact or underreact to order ...
Staff Reports , Paper 1030

FILTER BY year

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

D82 1 items

G1 1 items

G14 1 items

G2 1 items

G23 1 items

FILTER BY Keywords

activism 2 items

Blockholding 1 items

financial markets 1 items

hedge funds 1 items

insider trading 1 items

stocks 1 items

show more (2)

PREVIOUS / NEXT