Publication Type
Journal Article
Version
acceptedVersion
Publication Date
7-2001
Abstract
Researchers examined earnings-forecast revisions and stock returns after release of the Focus List of poorly performing companies by the Council of Institutional Investors. Using Tobin's q as a measure of a company's ability to improve performance, researchers found significant and positive abnormal forecast revisions and post-release stock returns for companies with q greater than one. Findings support the proposition that institutional activism is effective for underperforming companies - but only those companies with the ability to respond to the challenge to improve performance.
Discipline
Finance and Financial Management | Portfolio and Security Analysis
Research Areas
Finance
Publication
Financial Analysts Journal
Volume
57
Issue
4
First Page
21
Last Page
26
ISSN
0015-198X
Identifier
10.2469/faj.v57.n4.2462
Publisher
CFA Institute
Citation
CATON, Gary L.; GOH, Jeremy; and DONALDSON, Jeffrey.
The effectiveness of institutional activism. (2001). Financial Analysts Journal. 57, (4), 21-26.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/2204
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.2469/faj.v57.n4.2462