+1 Added to my documents.
Please be aware your selection is temporary depending on your cookies policy.
Remove this selection here

Environmental Social and Governance Proposals and Shareholder Activism

 

WP-Image page

Abstract

This chapter studies shareholder activism through environmental, social and governance (ESG) proposals between 1996 and 2015 filed by social responsible funds (“SRI”).

Larger, more mature firms with higher institutional holdings are more easily targeted by these proposals. An equal-weighted portfolio of target firms earns a four-factor alpha of 0.22% on the date of filing. Target firms with subsequent successful proposals earn higher buy-and-hold abnormal returns over the event period and have better long-term operating performances than firms whose proposals subsequently fail. Moreover, social performances of the target firms also improve.

These findings not only provide new evidence on the mechanism and outcome of shareholder activism on ESG issues but also highlight the role of SRI in effective shareholder activism. 

WEI Jiaying , ESSEC Business School

Download this article in PDF format

Send by e-mail
Environmental Social and Governance Proposals and Shareholder Activism
Was this article helpful?YES
Thank you for your participation.
0 user(s) have answered Yes.
Related articles