ASU Electronic Theses and Dissertations
This collection includes most of the ASU Theses and Dissertations from 2011 to present. ASU Theses and Dissertations are available in downloadable PDF format; however, a small percentage of items are under embargo. Information about the dissertations/theses includes degree information, committee members, an abstract, supporting data or media.
In addition to the electronic theses found in the ASU Digital Repository, ASU Theses and Dissertations can be found in the ASU Library Catalog.
Dissertations and Theses granted by Arizona State University are archived and made available through a joint effort of the ASU Graduate College and the ASU Libraries. For more information or questions about this collection contact or visit the Digital Repository ETD Library Guide or contact the ASU Graduate College at gradformat@asu.edu.
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- All Subjects: Business Administration
non-majority percentage of a company’s stock, exercise their voting rights, participate in
corporate governance and influence operational decisions of target companies. The
purpose is improve corporate governance, increase firm performance and boost share
-holders’ returns. Existing studies of shareholder activism, based largely in mature
capital markets like the US, come to different conclusions regarding its impact on firm
performance.
In this paper, I collect data on shareholder activism events in the China A Share
market between 2006 and 2016. The sample includes 60 companies targeted by 42
activist investors over this period. I find that institutional investors, typically industrial
capital and private funds, playing an increasingly important role in corporate governance
of Chinese listed companies through activism. The disclosure of the holdings of activists
results in large gains in the target firm. I also find subsequent improvements in long
-term operational performance of target firms. Activist investors in China focus on
smaller targets and those characterized by higher agency costs and lower operating
performance. Activists appear to be largely concerned with improvements in business
strategy and M&A activity. Non-hostile behavior is more likely to be related to successful
activism in China. In addition to statistical evidence, I present case studies of the
“BaoWan dispute” and the activist investment of Butterfly Capital in two firms,
“Guonong” and “Xiuqiang”. The case studies highlight the mechanism employed by these
firms to influence performance.
I conclude with policy recommendations and direction for further research.