Dimson, Karakaş, and Li (2018)

Dimson, Elroy, Oğuzhan Karakaş, and Xi Li. “Coordinated Engagements.” Working paper (London Business School), 2018.

From the authors’ abstract: “We study the nature and benefits of coordinated engagements by a prominent international network of activist shareholders cooperating to influence firms on environmental and social issues. We find a two-tier engagement strategy combining a lead investor with numerous supporting investors is effective in successfully achieving the stated engagement goals and subsequently improving target performance. Success rates are elevated when the lead investor is domestic and the supporting investors are international. An activist is more likely to lead the collaborative dialogue when its stake in the target firm is higher and relatedly when the free-rider problem is less pronounced in coalition.”

Link:  https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3209072