Do Activists Align with Larger Mutual Funds?

Manish Jha

Papers from arXiv.org

Abstract: This paper demonstrates that hedge funds tend to design their activist campaigns to align with the preferences and ideologies of institutions holding large stakes in the target company. I estimate these preferences by analyzing the institutions' previous proxy voting behavior. The results reveal that activists benefit from this approach. Campaigns with 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.

Date: 2024-11
New Economics Papers: this item is included in nep-cdm and nep-fmk
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