The Impact of Minority Shareholder Watchdog Group Activism on the Targeted Firms' Performance in Malaysia
This paper investigates the impact of the Minority Shareholder Watchdog Group (MSWG) activism on the performance of targeted firms in Malaysia. We find that MSWG-targeted firms earn statistically significantly higher stock returns than non-targeted firms in the long run. The results of various hypothesis tests involving firm performance measures show that MSWG-targeted firms experience significant increase in earnings relative to non-targeted firms in the first and second years after MSWG involvement. Our results imply that although the MSWG's approach to activism might not be comparable to the initiatives of independent activists in developed financial markets, this type of activism does make a difference by providing minority shareholders and institutional investors with resourceful solutions to reduce information asymmetries that have significant economic consequences.
Volume (Year): 5 (2009)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://web.usm.my/aamj/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:usm:journl:aamjaf00501_67-92. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journal Division)
If references are entirely missing, you can add them using this form.