Dividends, liquidity and shareholder activism
A recent
study "Relationship between Liquidity
and Shareholder Activism " (http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1344407
) shows that since Blockholders’ incentives to intervene in corporate governance are
weakened by free-rider problems and high costs of activism; liquidity helps overcome the free-rider problem and induces activism
via pre accumulation of target firms’ shares.
Authors of
the Study: * Oyvind Norli BI Norwegian Business School - Department of
Financial Economics; BI Norwegian Business School, BI Norwegian Business
School; Central Bank of Hungary, ; Charlotte Ostergaard , BI Norwegian Business School Ibolya Schindele BI Norwegian Business School;
Central Bank of Hungary