Effects of shareholder proposals on the market value of Japanese firms

Ryo Sato and Fumiko Takeda

International Review of Economics & Finance, 2023, vol. 86, issue C, 320-333

Abstract: This study investigates the effect of shareholder proposals on the market value of Japanese firms in the second wave of activism from 2017 to 2021. While announcements of receiving a shareholder proposal positively affect stock prices of investee companies, rejection of a shareholder's proposal has a negative impact. Unlike the first wave of activism, proposals related to the election and dismissal of directors are no different from those of other proposals, which may become more important as shareholder proposals diversify. Similar to the first wave, market responses become larger when the large shareholders made the proposals.

Keywords: Corporate governance; Shareholder activism; Shareholder proposal; Japan (search for similar items in EconPapers)
JEL-codes: G14 G23 G32 G34 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:86:y:2023:i:c:p:320-333

DOI: 10.1016/j.iref.2023.03.025

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