Active block investors and corporate governance around the world

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• 作者：Hugh Kim^a ; Rose C. Liao^a ; ^{liao@business.rutgers.edu" class="auth_mail" title="E-mail the corresponding author} ; Yan Wang^b
• 关键词：Block acquisitions ; International corporate governance
• 刊名：Journal of International Financial Markets, Institutions & Money
• 出版年：2015
• 出版时间：November 2015
• 年：2015
• 卷：39
• 期：Complete
• 页码：181-194
• 全文大小：548 K

文摘

In this paper, we examine a sample of 3119 minority block acquisitions around the world. One in seven firms are targeted by active investors who either have their own representatives on the board or in the extreme case, replace existing CEOs. We find that active investors are more prevalent in countries with good investor protection. Further, firms targeted by active investors experience significantly higher announcement returns and a significantly higher increase in profitability, sales, and investment expenditures subsequent to the block acquisition, especially in countries with good investor protection.