Consequences to directors of shareholder activism

• Main Authors: SHIN, Sa-Pyung Sean, SRINIVASAN, Suraj
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2016
• Subjects: Shareholder activism; hedge funds; Independent directors; Director reputation; Accountability; Shareholder voting; Accounting
• Online Access: https://ink.library.smu.edu.sg/soa_research/1590; https://ink.library.smu.edu.sg/context/soa_research/article/2617/viewcontent/14_071_c6c751e0_cf63_4c54_babb_e06fdefef4ac.pdf
• Institution: Singapore Management University

Using a comprehensive sample for 2004–2012, we examine the impact of shareholder activist campaigns on the careers of directors of targeted firms. We find that activism is associated with directors being almost twice as likely to leave—and performance-sensitivity of turnover being higher over the su...