Abstract:

This article examines the behavior of institutional investors and their influence on the short-term performance of M&A strategies. These strategies change the organizational control structure of companies that do not pursue the objective of maximizing shareholder wealth. Institutional activism and M&A performance are analyzed using linear regression to measure the degree of influence of institutional investors on the short-term stock market performance of French-listed companies. This research shows that institutional investors can influence corporate governance in sometimes decisive ways, even though they remain minority shareholders and are far from representing a homogeneous group of investors.

Keywords: Institutional Investors; Activism; Corporate Governance; Mergers and Acquisitions