Date of Submission
Open Access Senior Thesis
Bachelor of Arts
@2021 Audrey E Guilloteau
In the face of an activist threat, management may be inclined to provide additional disclosure to discourage potential intervention. This paper constructs an empirical model to measure the threat of activism and voluntary disclosure using a data set of 92 industrials focused activist events from 2008 to 2019. Propensity score matching is used to identify close peer firms that experience a threat of activism at the time a campaign is announced. Results from a difference in differences analysis indicate that firms targeted by hedge fund activists provide additional disclosure in the two-year period following the campaign announcement, as seen through an increase in the number of 8-Ks filed and an increase in their associated word counts. As for the non-targeted peer firms, the results suggest that an increase in the perceived threat of activism leads management to file fewer 8-Ks after an intervention that are shorter in length, as well.
Guilloteau, Audrey, "The Threat of Activist Intervention: A Determinant of 8-K Disclosure for Industrial Companies" (2022). CMC Senior Theses. 2864.