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<p>The growing presence of activist investors in Germany challenges companies with a confrontational style and broad demands. This article analyses the Anglo-American capital market phenomenon in the context of companies’ corporate governance and their shareholder structure. We examine the valuation effects of activist campaigns using share price reactions. The short-term announcement returns surrounding activist campaigns are positive and statistically significant. The mean abnormal share price return amounts to 3.96%. The results can be attributed to a combination of transaction and information effects.</p>
</abstract>

The growing presence of activist investors in Germany challenges companies with a confrontational style and broad demands. This article analyses the Anglo-American capital market phenomenon in the context of companies’ corporate governance and their shareholder structure. We examine the valuation effects of activist campaigns using share price reactions. The short-term announcement returns surrounding activist campaigns are positive and statistically significant. The mean abnormal share price return amounts to 3.96%. The results can be attributed to a combination of transaction and information effects.

Activist Investors’ Influence on Companies

Wirtschaftsdienst

This work is licensed under the Creative Commons Attribution 4.0 International License.

Aktivistisch Investierende und ihre Einflussnahme auf Unternehmen

The growing presence of activist investors in Germany challenges companies with a confrontational style and broad demands. This article analyses the...

Activist Investors’ Influence on Companies

Published Online: Nov 24, 2023

Page range: 783 - 787

DOI: https://doi.org/10.2478/wd-2023-0213

© 2023 Raphael Zwölfer et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.