Shareholder activism – mechanisms and implications

This research project focuses on shareholder activism in Japan and some other Asia-Pacific markets, including Australia, New Zealand, Singapore, Malaysia, Korea, and China (including Hong Kong and Taiwan). Shareholders are getting more active in exercising their rights and responsibilities, regardless of their ownership levels and investment styles. Not only those primarily focusing on activist investing, but mainstream institutional investors have also been more inclined to voice out what they think how the investee company should be run, especially to serve the best interest of all relevant stakeholders. Shareholders also have a richer toolkit to ensure that their voice is heard.

As investors around the world are getting more active in their ownership in portfolio companies, we look to understand the type of issues that shareholders are concerned about and the channels in which their concerns are raised.

Research questions

  • Why and how do shareholders get more active in their ownership in portfolio companies?
  • Are shareholders successful with their campaigns in terms of improving the company's total returns to shareholders?
  • Are activist shareholders successful in improving the operating performance of the target companies both in the short term and long term?