Investors’ activism and the gains from takeover deals

Research output: Contribution to journalArticlepeer-review


External organisations

  • Strathclyde Business School, University of Strathclyde, Glasgow G4 0QU, UK
  • Brunel Business School, Brunel University
  • Durham University


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.


Original languageEnglish
Pages (from-to)64-83
JournalEuropean Journal of Finance
Issue number1
Early online date23 Oct 2019
Publication statusPublished - 2020


  • Hedge Funds, Investor Activism, Mergers & Acquisitions, Event Studies