The Evolution of Shareholder Activism in the United States*

Abstract

A Morgan Stanley Publication • Winter 2007 4. For analyses of the effects of selling shares on corporate governance, see Admati and Pfl eiderer (2006) or Parrino, Sias, and Starks (2003).5. Hirschman (1971).6.Our focus in this review is on studies of corporate governance issues and attempts to link governance-based activism to shareholder value.This is notably different from the intent of, say, Tkac (2006), which provides an analysis of shareholder proposals with particular focus on social issues.7. Manne (1972).8.American Society of Corporate Secretaries, 1979, Report on Shareholder Proposals July 1, 1978 to June 30 1979.9. Some of the gadfl ies had been submitting proposals since they were fi rst allowed in 1942.In fact, according to Talner (1983), the activism of the Gilbert Brothers can be traced to a 1932 annual shareholders meeting of Consolidated Gas in which the Chairman never recognized any of the shareholders who had raised their hand to ask questions.Lewis Gilbert was reportedly appalled by the lack of communication between management and shareholders.10.Ross, N., 1983, "Gadfl ies Set to Buzz Shareholders' Meetings," The Washington Post (April 17), G1.11. See Strickland, Wiles, and Zenner (1996) and Speeches of T. Boone Pickens http://digital.