2026-05-24T22:45:26Zhttps://keep.lib.asu.edu/oai/requestoai:keep.lib.asu.edu:node-1554362024-12-20T18:25:12Zoai_pmh:alloai_pmh:repo_items155436
https://hdl.handle.net/2286/R.I.44091
http://rightsstatements.org/vocab/InC/1.0/
All Rights Reserved
2017
215 pages
Doctoral Dissertation
Academic theses
Text
eng
Xie, Fenghua
Wahal, Sunil
Yan, Hong
Lee, Peggy
Arizona State University
Doctoral Dissertation Business Administration 2017
Shareholder Activism is a mechanism by which investors who hold a significant but<br/><br/>non-majority percentage of a company’s stock, exercise their voting rights, participate in<br/><br/>corporate governance and influence operational decisions of target companies. The<br/><br/>purpose is improve corporate governance, increase firm performance and boost share<br/><br/>-holders’ returns. Existing studies of shareholder activism, based largely in mature<br/><br/>capital markets like the US, come to different conclusions regarding its impact on firm<br/><br/>performance.<br/><br/>In this paper, I collect data on shareholder activism events in the China A Share<br/><br/>market between 2006 and 2016. The sample includes 60 companies targeted by 42<br/><br/>activist investors over this period. I find that institutional investors, typically industrial<br/><br/>capital and private funds, playing an increasingly important role in corporate governance<br/><br/>of Chinese listed companies through activism. The disclosure of the holdings of activists<br/><br/>results in large gains in the target firm. I also find subsequent improvements in long<br/><br/>-term operational performance of target firms. Activist investors in China focus on<br/><br/>smaller targets and those characterized by higher agency costs and lower operating<br/><br/>performance. Activists appear to be largely concerned with improvements in business<br/><br/>strategy and M&A activity. Non-hostile behavior is more likely to be related to successful<br/><br/>activism in China. In addition to statistical evidence, I present case studies of the<br/><br/>“BaoWan dispute” and the activist investment of Butterfly Capital in two firms, <br/><br/>“Guonong” and “Xiuqiang”. The case studies highlight the mechanism employed by these<br/><br/>firms to influence performance.<br/><br/>I conclude with policy recommendations and direction for further research.
Business Administration
Behavioral Motives
Firm Performance
Shareholder Activism
Target Realm
Types of Behaviors
Activist Investors and Firm Performance Empirical Evidence From Chinese A Share Market