Shareholder activism: A Swiss case study

Abstract

This article examines the phenomenon of shareholder activism using a case study methodology as a qualitative research approach. Three affected Swiss public companies have been selected on the basis of an evaluation of all corresponding reports published by Finanz und Wirtschaft (FuW). The study covers the period from 2015 to 2019. The chosen companies, Meyer Burger, GAM (Global Asset Management), and Clariant, were examined over this period. Our results show, that individual activist investors were able to generate substantial profits for themselves during the period studied, but not in a long-term and sustainable manner. Shareholder activism manifested itself in various forms and strategies within the scope of the individual cases. However, we were able to identify a general scheme of engagement for shareholder activists. Our research further shows that interests between long-term investors and management often collide when it comes to decisions about mergers and acquisitions (M&A). This results in shareholders tending to engage in shareholder activism as a countermeasure in order to enforce their demands