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A measure of the impact of activism on the returns to shareholders of the target companies: A European perspective 2008 - 2018

Cullen, Patricia (2019) A measure of the impact of activism on the returns to shareholders of the target companies: A European perspective 2008 - 2018. Masters thesis, Dublin, National College of Ireland.

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Abstract

The current upward trajectory of shareholder activism in the European market and the substantial time and capital committed to it solicits clarity on its effectiveness. This research analyses reported shareholder activism of all type and motive in Europe during the period 2008-2018 and assesses the impact of activism on the returns to the shareholders in the short to medium term over 6 defined time frames. The research examines the returns on the target companies compared to the returns available on the market and also measures the Sharpe ratio of both sets of returns. Findings show that shareholder activism in the period provide returns in excess of the market across most time frames and in addition that the Sharpe ratio of stock that has been subject to an activist event is much greater than the Sharpe ratio of the market. Finally the research investigated the impact of multiple activist events as opposed to a single activist event and found no evidence multiple activist events provided any additional returns over single activist events.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HG Finance
H Social Sciences > HG Finance > Investment
H Social Sciences > HG Finance > Share Ownership
Divisions: School of Business > Master of Science in Finance
Depositing User: CAOIMHE NI MHAICIN
Date Deposited: 21 Oct 2019 10:46
Last Modified: 21 Oct 2019 10:46
URI: http://trap.ncirl.ie/id/eprint/3976

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