6533b81ffe1ef96bd127887c

RESEARCH PRODUCT

Faut-il acheter des actions des entreprises apparaissant sur les listes noires du Conseil des investisseurs institutionnels ?

subject

description

The Long Run Impact of Coordinated Activism Initiated by the Council of the Institutional Investors (CII) on Returns of the Targeted Firms Shares A pension funds money manager faces the following alternative when it holds under-performing shares : either it sells them, or it keeps them and seeks to influence the managers of the firms involved. Several reasons can explain why American pension funds followed the second way. Such a strategy contribute to the development of a practice called shareholder activism. This article focuses particularly on this phenomenon. For this purpose, author describes the various existing practices of activism (proxy targeting and performance targeting). Then, his attention goes on the second type of activism. He deals principally with the long run impact of coordinated activism initiated by the Council of the Institutional Investors (CII) on the evolution of returns of the targeted firms shares. JEL classifications : G23, G31, G34