The Devil is in the Details: Firm-Specific or Market Information in Shareholder Activism
The Devil is in the Details: Firm-Specific or Market Information in Shareholder Activism
dc.contributor.author | Pei, Duo | |
dc.date.accessioned | 2020-12-01T01:00:28Z | |
dc.date.available | 2020-12-01T01:00:28Z | |
dc.date.issued | 2020-08-16 | |
dc.description.abstract | This study measures how shareholder activism may change market participants' processing and incorporation of different types of information. Specifically, I examine the earnings response coefficient (ERC), price delay, and probability of informed trading (PIN), which capture the usage of firm-specific public information, public market-wide information, and firm-specific private information, respectively. I find an increase in ERC, price delay, and PIN during shareholder activism. I also find an influx of attention-based trading in the 2 quarters immediately after 13D filing, which is subsequently replaced by information-based trading. The findings are consistent with a slower reflection of publicly available market-wide information and investors engaging in more firm-specific information processing. Investors appear to substitute more general information with focused information about activist targets in their trading decisions. | |
dc.identifier.uri | http://hdl.handle.net/10125/70541 | |
dc.subject | Shareholder Activism | |
dc.subject | Price Response | |
dc.subject | Investor Attention | |
dc.subject | Firm-Specific Information | |
dc.subject | Private Information | |
dc.subject | Public Information | |
dc.title | The Devil is in the Details: Firm-Specific or Market Information in Shareholder Activism |
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