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Investors activism and the gains from takeover deals.

Guo, M. and Paudyal, K. and Utham, V. and Xing, X. (2020) 'Investors activism and the gains from takeover deals.', European journal of finance., 26 (1). pp. 64-83.


We examine whether activists add value to the shareholders of targets and their acquirers. Several findings emerge. First, acquirers of targets that have activists outperform acquirers of other targets in both the short and long term. Second, the premium received by the shareholders of targets is not affected by activism. Third, superior gains achieved by the acquirers of targets with activists are driven by non-cash deals, while the average target benefits more from cash deals.

Item Type:Article
Full text:(AM) Accepted Manuscript
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Publisher statement:This is an Accepted Manuscript of an article published by Taylor & Francis in European Journal of Finance on 23rd October 2019, available online:
Date accepted:08 October 2019
Date deposited:10 October 2019
Date of first online publication:23 October 2019
Date first made open access:23 April 2021

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