The effects of pension fund activism on corporate performance : evidence from shareholder proposal /
During the 1980s and continuing through the 1990s, managers
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| Format: | Thesis Book |
| Language: | English |
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[Place of publication not identified] :
[publisher not identified] ;
1996.
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| Subjects: | |
| Online Access: | http://proxy.library.tamu.edu/login?url=http://proquest.umi.com/pqdweb?did=739327401&sid=1&Fmt=2&clientId=2945&RQT=309&VName=PQD |
| Summary: | During the 1980s and continuing through the 1990s, managers at several large pension funds have attempted to improve the performance of firms in which they invest. In this dissertation, I attempt to determine the effectiveness of their actions by examining targeted firms' accounting and equity performance around shareholder proposals sponsored by pension fund managers. Following Barber and Lyon (I 996), 1 find persistent unexpected return on assets in firms with pension fund sponsored shareholder proposals, however, this unexpected return on assets is not statistically different from unexpected return on assets in a matched sample of control firms without shareholder proposals Using event study methodology, I find no unexpected returns around the first public announcement of pension fund activity and around the proxy mailing date. Using information supplied by a pension fund, I find positive and significant unexpected returns around the announcement of an agreement between a pension fund and a targeted firm. However, this unexpected return is surprising since I am unable to verify the majority of the announcement dates for agreements in the Dow Jones News Service Text database. Additionally, there is no correlation between unexpected returns around the first public announcement of activity and unexpected returns around the announcement of an agreement between pension fund and firm managers. Finally, regression results suggest that there is no relation between the variables studied and the level of unexpected return on assets or unexpected equity returns around the three dates I examine. The evidence together provides little support for the belief that pension fund activity affects firm performance. |
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| Item Description: | Vita. "Major Subject: Finance". |
| Physical Description: | viii, 62 leaves : illustrations ; 28 cm. Issued also on microfiche from University Microfilms Inc. |
| Bibliography: | Includes bibliographical references: pages 56-59. |