Shareholder Wealth Effects of CalPERS' Activism

Authors

  • Claire E. Crutehley 303 Lowder Business Building, Auburn University, Auburn, AL 36849, Fax: 3341844-4960
  • Carl D. Hudson 303 Lowder Business Building, Auburn University, Auburn, AL 36849, Fax: 3341844-4960
  • Marlin R.H. Jensen 303 Lowder Business Building, Auburn University, Auburn, AL 36849, Fax: 3341844-4960

DOI:

https://doi.org/10.1016/S1057-0810(99)80009-2

Abstract

In the past decade, institutional investors have become more active in monitoring man- agement and voting the shares they control. The California Public Employees' Retirement System (CaIPERS) was a leader in this wave of activism. This study investi- gates the long-term returns an investor with public information could earn by buying a portfolio offirms targeted by CaIPERS and whether the success of CaIPERS' activism depends on the aggressiveness of the targeting. The evidence supports the idea that vis- ible and aggressive activism leads to substantial increases in shareholder wealth while a quieter activism does not.

Downloads

Download data is not yet available.

Downloads

Published

1998-03-30

Issue

Vol. 7 No. 1 (1998): Financial Services Review

Section

New Original Submission

License

Copyright (c) 1998 JAI Press Inc.

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Author(s) retain copyright and grant the Journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial 4.0 International License that allows to share the work with an acknowledgment of the work's authorship and initial publication in this Journal.

This license allows the author to remix, tweak, and build upon the original work non-commercially. The new work(s) must be non-commercial and acknowledge the original work.

How to Cite

Shareholder Wealth Effects of CalPERS’ Activism. (1998). Financial Services Review, 7(1), 1-10. https://doi.org/10.1016/S1057-0810(99)80009-2

Most read articles by the same author(s)