Do activists align with larger mutual funds?

Manish Jha

Journal of Banking & Finance, 2025, vol. 173, issue C

Abstract: This study shows that hedge funds tend to design their activist campaigns to match the preferences and ideologies of institutions holding large stakes in the target company. These preferences are estimated by analyzing the institutions’ past proxy voting behavior. The findings show that activists benefit from this approach. Campaigns that show a stronger positive correlation between the preferences of larger institutions and activist communications attract more shareholder attention, receive more votes, and are more likely to succeed.

Keywords: Hedge fund activism; Shareholder preferences; Text analysis; Machine learning (search for similar items in EconPapers)
JEL-codes: G23 G32 G34 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:173:y:2025:i:c:s0378426625000226

DOI: 10.1016/j.jbankfin.2025.107402

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