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Does Shareholder Activism Have a Long-Lasting Impact on Company Value? A Meta-Analysis

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  • Josef Bajzik

Abstract

I collect 1,186 reported estimates of long-run value creation from 49 studies and present the first meta-analysis of the literature on shareholder activism and its effect on firm value in the long run. This synthesis is necessary because shareholder activism is increasing over time and across countries. The study shows that the conclusion as to whether activism is beneficial depends on the benchmark with which the targeted firm is compared. Second, the estimates are also overstated due to publication bias. Third, the value added by activism depends on the country-specific regulatory framework.

Suggested Citation

  • Josef Bajzik, 2023. "Does Shareholder Activism Have a Long-Lasting Impact on Company Value? A Meta-Analysis," Working Papers 2023/10, Czech National Bank.
    • Handle: RePEc:cnb:wpaper:2023/10
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    References listed on IDEAS

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    More about this item

    Keywords

    Abnormal return; event study; long run; meta-analysis; model averaging; publication bias; shareholder activism;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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