Returns to Shareholder Activism: Evidence from a Clinical Study of the Hermes UK Focus Fund

Marco Becht; Julian Franks; Colin Mayer; Stefano Rossi

doi:10.1093/rfs/hhn054

Returns to Shareholder Activism: Evidence from a Clinical Study of the Hermes UK Focus Fund

Marco Becht¹; Julian Franks²; Colin Mayer^3,4; Stefano Rossi⁵

¹ Université Libre de Bruxelles · ² London Business School · ³ Center for Economic and Policy Research · ⁴ University of Oxford · ⁵ Stockholm School of Economics

Review of Financial Studies 2009 open access

This article reports a unique analysis of private engagements by an activist fund. It is based on data made available to us by Hermes, the fund manager owned by the British Telecom Pension Scheme, on engagements with management in companies targeted by its UK Focus Fund. In contrast with most previous studies of activism, we report that the fund executes shareholder activism predominantly through private interventions that would be unobservable

DOI: 10.1093/rfs/hhn054
Volume: 22 (8)
Pages: 3093-3129
Language: en
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