Returns to Shareholder Activism: Evidence from a Clinical Study of the Hermes UK Focus Fund

Becht, Marco; Franks, Julian R.; Mayer, Colin; Rossi, Stefano

doi:10.1093/rfs/hhn054.ra

Cited by 264 publications

(288 citation statements)

References 38 publications

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“…Studies report that active institutional shareholders include pension funds, mutual funds and hedge funds with banks and insurance companies (Becht et al, 2008;Brav et al, 2008;Klein andZur, 2009, Hendry et al, 2007;Song and. Szewczyk, 2003).…”

Section: Institutional Shareholders and Shareholders' Associations Asmentioning

confidence: 99%

“…Institutional shareholders and shareholders' associations openly question, discuss and negotiate with management on strategic decisions at private meetings (Solomon and Darby, 2005;Roberts et al, 2006. Dialogues as a way of engagement with managers is particularly favoured by pension funds (Becht et al, 2008;Goranova and Ryan, 2014;Norli, et al, 2015, Poulsen et al, 2010Strickland et al, 1996). Solomon and Darby (2005) find that companies gain from their dialogue with institutional shareholders on social, ethical and environmental issues (SEEs).…”

Section: Accountability and Dialectical Activitymentioning

confidence: 99%

“…Influence is easier where there is a level of independence between the activist and the management of the target company. This implicit assumption is observed in the analysis of the relationship between institutional shareholders and management in the study of shareholder activism (Becht et al, 2008;Crespi and Renneboog, 2010;Ingley and Van der Walt, 2001;Catasús and Johed, 2007;Johed and Catasús, 2015). Poulsen et al (2010) notes that in the Swedish corporate governance system, the small shareholders linked to shareholders' associations are able to have a voice independent of the board due to the corporate governance structure.…”

Section: Accountability and Dialectical Activitymentioning

confidence: 99%

“…One possible explanation is that dialogues held privately with management are highly favoured by institutional shareholders particularly pension funds. They were deemed to be a more powerful option (Becht et al, 2008;Goranova and Ryan, 2014). Goranova and Ryan (2014) describe this approach as synonymous with private activism where activities linked to shareholder activism are typically unobservable by researchers.…”

Section: Accountability and [Non] Dialectical Activitymentioning

confidence: 99%

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Institutional shareholder activism in Nigeria: An accountability perspective

2016

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General rightsThis document is made available in accordance with publisher policies. Please cite only the published version using the reference above. Full terms of use are available: http://www.bristol.ac.uk/pure/about/ebr-terms 1 Institutional shareholder activism in Nigeria: An accountability perspective ABSTRACT Research has identified institutional shareholders and shareholders' associations as separate groups that are able to interact and promote accountability through shareholder activism. This study employs a qualitative methodology to critically evaluate how institutional shareholders perceive the participation of Nigerian shareholders' associations in shareholder activism. We examine three features of accountability that are vital in shareholder activism; dialectical activity, independence and agenda. We contribute to the accountability literature by showing how these three features shape institutional shareholders' perception of shareholders' associations as shareholder activists. Our findings show distinct differences between the views of representatives from active and passive institutional shareholders.

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Section: Institutional Shareholders and Shareholders' Associations Asmentioning

confidence: 99%

Section: Accountability and Dialectical Activitymentioning

confidence: 99%

Section: Accountability and Dialectical Activitymentioning

confidence: 99%

Section: Accountability and [Non] Dialectical Activitymentioning

confidence: 99%

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Institutional shareholder activism in Nigeria: An accountability perspective

2016

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“…It was found that the estimated monitoring costs consume more than twothirds of gross activist returns implying that the net returns to activism are significantly lower than previously thought. Becht et al (2010) studied activism of the trustees of one UK pension fund, the Hermes UK Focus Fund (HUKFF). The activism was for bringing about substantial changes in the governance structure of target companies to overcome free riding problems in an institutional environment that was particularly friendly to activist shareholders.…”

Section: Shareholder Activismmentioning

confidence: 99%

Study on theories and mechanisms of corporate governance

Mishra

Kapil

2017

IJAAPE

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This paper aims to review the theories of corporate governance for understanding the theoretical basis of corporate governance mechanisms. Major theoretical studies on corporate governance, including studies done in emerging economies, are included in the review. The paper looks at corporate governance theories from value creation point of view. It is observed that the two perspectives of corporate governance, i.e., shareholder and stakeholder perspectives, are not in contrast to each other but are pointing towards the same goal, i.e., value creation. However, one points towards value creation for shareholders and the other points towards creation of societal value. While reviewing theoretical underpinnings and assumptions for corporate governance perspectives, due consideration has been given to the development of corporate governance mechanism based on various existing theories. A theoretical framework for understanding the relationship between corporate governance mechanism and corporate performance has been proposed. Emerging challenges for corporate governance theories have also been indicated. This being a review paper, one of the major limitations is an unintentional omission of some literature because of non-availability or non-reachability. Literature that would have been present in languages other than English could also not been included in the review.

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