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Bibliographic Details
Main Author: Jha, Manish
Format: Preprint
Published: 2024
Subjects:
Online Access:https://arxiv.org/abs/2411.16553
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Table of Contents:
  • This paper demonstrates that hedge funds tend to design their activist campaigns to align with the preferences and ideologies of institutions holding large stakes in the target company. I estimate these preferences by analyzing the institutions' previous proxy voting behavior. The results reveal that activists benefit from this approach. Campaigns with a stronger positive correlation between the preferences of larger institutions and activist communications attract more shareholder attention, receive more votes, and are more likely to succeed.