Does shareholder activism improve operating performance of targeted companies: a re-examination of CalPERS' focus list program

Steven X. Zheng and Ke Zhong

International Journal of Corporate Governance, 2017, vol. 8, issue 2, 156-173

Abstract: This paper examines the effectiveness of California public employees' retirement system (CalPERS)' activism on improving operating performance of companies targeted by its Focus List program over the 1992-2009 period. We find that operating performance of the Focus List firms, through various measures, improved significantly over the 2 years subsequent to being targeted by CalPERS. The empirical evidence suggests that CalPERS' activism is more effective in improving the targeted firms' operating performance than previously recognised in the literature.

Keywords: CalPERS focus list; corporate governance; operating cash flows; operating efficiency; operating performance; operating profit margin; return on assets; shareholder activism. (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijcgov:v:8:y:2017:i:2:p:156-173

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