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Quasi-Insider Shareholder Activism: Corporate Governance at the Periphery of Control

Author

Listed:
  • Jonathan Cohn
  • Mitch Towner
  • Aazam Virani

Abstract

We analyze shareholder activism by “quasi-insiders”: founders, former executives, and other individuals tangentially connected to a firm. These individuals seek control in their campaigns, use aggressive tactics, and target smaller, poorly performing firms. Their campaigns are associated with positive announcement returns. Former CEOs who engage in campaigns often depart from the target under negative circumstances before launching their campaigns soon afterward. Our results suggest that insiders at the periphery of control may intervene in firms too small for traditional activists to target. (JEL: G34, G32)

Suggested Citation

  • Jonathan Cohn & Mitch Towner & Aazam Virani, 2025. "Quasi-Insider Shareholder Activism: Corporate Governance at the Periphery of Control," The Review of Corporate Finance Studies, Society for Financial Studies, vol. 14(1), pages 1-34.
    • Handle: RePEc:oup:rcorpf:v:14:y:2025:i:1:p:1-34.
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    File URL: http://hdl.handle.net/10.1093/rcfs/cfad016
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    More about this item

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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