Consequences to directors of shareholder activism
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...
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sg-smu-ink.soa_research-26172017-08-10T08:34:36Z Consequences to directors of shareholder activism SHIN, Sa-Pyung Sean SHIN, Sa-Pyung Sean SRINIVASAN, Suraj 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 subsequent two-year period. Our evidence suggests that director turnover occurs even without shareholder activists engaging in, let alone winning, proxy contests and, in contrast to most prior research, director election results matter. Overall, our evidence suggests that shareholder activism, even in the absence of proxy fights, is associated with greater accountability for independent directors. 2016-05-01T07:00:00Z text application/pdf 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 http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Accountancy eng Institutional Knowledge at Singapore Management University Shareholder activism hedge funds Independent directors Director reputation Accountability Shareholder voting Accounting |
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Shareholder activism hedge funds Independent directors Director reputation Accountability Shareholder voting Accounting SHIN, Sa-Pyung Sean SHIN, Sa-Pyung Sean SRINIVASAN, Suraj Consequences to directors of shareholder activism |
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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 subsequent two-year period. Our evidence suggests that director turnover occurs even without shareholder activists engaging in, let alone winning, proxy contests and, in contrast to most prior research, director election results matter. Overall, our evidence suggests that shareholder activism, even in the absence of proxy fights, is associated with greater accountability for independent directors. |
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text |
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SHIN, Sa-Pyung Sean SHIN, Sa-Pyung Sean SRINIVASAN, Suraj |
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SHIN, Sa-Pyung Sean SHIN, Sa-Pyung Sean SRINIVASAN, Suraj |
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SHIN, Sa-Pyung Sean |
title |
Consequences to directors of shareholder activism |
title_short |
Consequences to directors of shareholder activism |
title_full |
Consequences to directors of shareholder activism |
title_fullStr |
Consequences to directors of shareholder activism |
title_full_unstemmed |
Consequences to directors of shareholder activism |
title_sort |
consequences to directors of shareholder activism |
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Institutional Knowledge at Singapore Management University |
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2016 |
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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 |
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