Shareholder Activism by Institutional Investors: Benefits and Drawbacks for Target Companies

Year 2025, Volume: 13 Issue: 1, 330 - 349, 10.07.2025

Cansu Cindoruk

https://doi.org/10.56701/shd.1604839

Abstract

The present study aims to analyse the shareholder activism of institutional investors with regard to corporate and capital market legislation. Accordingly, the study defines the concept of shareholder activism and comprehensively analyses the distinctive features of activist institutional investors, along with their targeted companies. In order to differentiate between the various activist strategies employed by institutional investors, an overview of different forms of shareholder activism is provided under two main categories. Performance-oriented activism may aim to improve a company's financial structure and increase its market capitalisation, while corporate governance-oriented activism focuses on the development of a more effective governance approach. In this context, the study specifically discusses that activist institutional investor strategies can have both benefits and risks for target companies. Furthermore, research findings on the negative effects of short-term strategies on long-term sustainability are also analysed.

Keywords

Shareholder Activism , Institutional Investor Activism , Institutional Investors , Activist Hedge Funds , Shareholder Value

Kurumsal Yatırımcıların Pay Sahibi Aktivizmi: Hedef Şirketlere Yönelik Fayda ve Sakıncalar

Abstract

Bu çalışma, şirketler hukuku ve sermaye piyasası hukuku bağlamında, kurumsal yatırımcıların pay sahibi aktivizmini incelemeyi amaçlamaktadır. Çalışmada, pay sahibi aktivizmi kavramı tanımlanmakta; aktivist kurumsal yatırımcıların ve hedef alınan şirketlerin öne çıkan nitelikleri detaylı bir şekilde ele alınmaktadır. Bununla birlikte, kurumsal yatırımcılar tarafından uygulanan çeşitli aktivist stratejiler arasında bir ayrım yapabilmek için, pay sahibi aktivizminin farklı biçimlerine iki temel kategori altında genel bir bakış sunulmaktadır. Performans odaklı aktivizm, şirketin mali yapısını iyileştirme ve piyasa değerini artırma gibi hedefler taşıyabilirken; kurumsal yönetim odaklı aktivizm, daha etkin bir yönetim anlayışının geliştirilmesine odaklanmaktadır. Bu bağlamda, çalışma özellikle aktivist kurumsal yatırımcı stratejilerinin hedef şirketler için hem faydalar hem de riskler barındırabileceğini tartışmaktadır. Bununla birlikte, kısa vadeli stratejilerin uzun vadeli sürdürülebilirlik üzerindeki olumsuz etkilerine dair tespit edilen araştırma bulguları da analiz edilmektedir.

Keywords

Pay Sahibi Aktivizmi , Kurumsal Yatırımcı Aktivizmi , Kurumsal Yatırımcılar , Aktivist Serbest Fonlar , Pay Sahipliği Değeri

References

• Akgün, Ali İhsan. “Ekonomik Katma Değer (EVA) ile İşletme Sermayesi Etkinliği Arasındaki İlişki: 2008 Küreşel Finansal Kriz Dönemine İlişkin Bulgular”. Maliye ve Finans Yazıları 112 (2019), 95-118. https://doi.org/10.33203/mfy.491229
• Albath, Christina. Shareholder Activism im Rahmen der Hauptversammlung. Baden-Baden: Nomos Verlag, 2022.
• Anabtawi, Iman – Stout Lynn. “Fiduciary Duties for Activist Shareholders”. Stanford Law Review 60/5 (2008), 1255-1307. https://doi.org/10.2139/ssrn.1089606
• Arıcı, M. Fatih – Veziroğlu, Cem. Kaldıraçlı Devralma (Leveraged Buyout) ve Anonim Şirketin Finansal Yardım Yasağı. İstanbul: On İki Levha Yayıncılık, 2018.
• Aydın, Alihan. Anonim Ortaklığın Kendi Paylarını Edinmesi. İstanbul: Arıkan Yayınları, 2008.
• Bağcı, Haşim. “Özel Sermaye Fonları.” Girişimcilik Finansmanı, ed. Gülüzar Kurt Gümüş ve Ceyda Yerdelen Kaygın, 64. Ankara: Gazi Kitabevi, 2021.
• Bainbridge, Stephen M. “Director Primacy and Shareholder Disempowerment”. Harvard Law Review 119/6 (2006), 1735-1758. https://doi.org/10.2139/ssrn.299727
• Bauer, Rob vd. “Insider Ownership, Governance Mechanisms, and Corporate Bond Pricing Around the World.” Journal of International Money and Finance 117 (2021), 1-20. https://doi.org/10.1016/j.jimonfin.2021.102423
• Bebchuk, Lucian A. vd. “The Long-Term Effects of Hedge Fund Activism”. Columbia Law Review 115/5 (2015), 1085-1155. https://doi.org/10.2139/ssrn.2291577
• Bebchuk, Lucian A. vd. “The Agency Problems of Institutional Investors”. Journal of Economic Perspectives 31/3, 89-102. http://dx.doi.org/10.2139/ssrn.2982617
• Black, Bernard S. - Coffee Jr., John C., “Hail Britannia: Institutional Investor Behavior Under Limited Regulation”. Michigan Law Review 97/2, 1997-2087. https://doi.org/10.2307/1289659
• Bratton, William W. – McCahery, Joseph A. Institutional Investor Activism: Hedge Funds and Private Equity, Economics and Regulation. ed. William W. Bratton ve Joseph A. McCahery. New York: Oxford University Press, 2015.
• Brav, Alon vd. “Hedge Fund Activism, Corporate Governance, and Firm Performance”. The Journal of Finance 63 (2008). https://doi.org/10.1111/j.1540-6261.2008.01373.x
• Brav, Alon vd. “Hedge Fund Activism: A Review.” Foundations and Trends in Finance 4/3 (2010), 185-246. http://dx.doi.org/10.1561/0500000026
• Brückner, Patrick. Aktivistische Aktionäre: Leitbildgedanken zum Aktionär, rechtliche Beschränkungen aktivistischen Aktionärsverhaltens und Reaktionsmöglichkeiten. Berlin: Duncker & Humblot Verlag, 2023.
• Burckhardt, Christoph. Loyalitätsaktien im schweizerischen Recht de lege lata und de lege ferenda. Zürich: Dike Verlag, 2023.
• Carmichael, Jeffrey – Palacios, Robert A.. “A Framework for Public Pension Fund Management.” Public Pension Fund Management, Governance, Accountability, and Investment Policies: Proceedings of the Second Public Pension Fund Management Conference (May 2003), ed. Alberto R. Musalem ve Roberto J. Palacios, Washington, DC: World Bank, 2003.
• Chambers, Nurgül. “Hedge Fonlar”. Niğde Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi 1/1 (2008), 5-13.
• Cheffins, Brian R. – Armour, John. “The Past, Present and Future of Shareholder Activism by Hedge Funds”. Journal of Corporation Law 37/1 (2011), 51-103. https://ora.ox.ac.uk/objects/uuid:a6107362-0fcf-4b70-baf3-3a980d4c6746
• Coffee Jr., John C. – Palia, Darius. “The Wolf at the Door: The Impact of Hedge Fund Activism on Corporate Governance”. Annals of Corporate Governance 1/1 (2016), 547-602.
• Dallas, Lynne L. “Short-Termism, the Financial Crisis, and Corporate Governance”. Journal of Corporation Law 37 (2012), 267-362.
• Denes, Matthew vd. “Thirty Years of Shareholder Activism: A Survey of Empirical Research”. Journal of Corporate Finance 44 (2017), 407-424. https://doi.org/10.1016/j.jcorpfin.2016.12.003
• Deutsches Aktieninstitut (DAI) - McKinsey&Company (McKinsey). Investorendialog im Umbruch: Zum Umgang börsennotierter Unternehmen mit aktiven Aktionären. 2009.
• Eisenhofer, Jay W. – Barry, Michael J. Shareholder Activism Handbook. New York: Wolters Kluwer, 2005.
• Engert, Andreas. “Hedgefonds als aktivistische Aktionäre”. Zeitschrift für Wirtschaftsrecht (ZIP) (2006), 2105-2113.
• Erdem, Fatih B. ve Cansu Cindoruk. “Corporate Sustainability and the Shareholder Activism Problem.” Law and Sustainability: Perspectives for Lithuania and Beyond, ed. Alessio Bartocelli ve Dovilė Sagatienė, 2023. Krakow: Księgarnia Akademicka Publishing, 185-206. https://doi.org/10.12797/9788381388405
• Faber, Joachim. “Institutionelle Investoren (einschließlich Hedgefonds und Private Equity).” Handbuch Corporate Governance: Leitung und Überwachung börsennotierter Unternehmen in der Rechts- und Wirtschaftspraxis, ed. Peter Hommelhoff, Klaus J. Hopt ve Axel von Werder, 223. Stuttgart: Schäffer-Poeschel Verlag.
• Faure, Anna. Verantwortung institutioneller Aktionäre im deutschen Aktienrecht. Baden-Baden: Nomos Verlag, 2019.
• Fischel, Daniel. “The Corporate Governance Movement”. Vanderbilt Law Review 35/6 (1982), 1259-1292.
• Fried, Vance H. vd. “Strategy and the Board of Directors in Venture Capital-Backed Firms”. Journal of Business Venturing 13/6 (1998), 493-503. https://doi.org/10.1016/S0883-9026(97)00062-1
• Gerlicher, Dominik. Shareholder Activism im Regelungskontext des deutschen Aktien- und Kapitalmarktrechts. Hamburg: Verlag Dr. Kovač, 2017.
• Gillan, Stuart L. – Starks, Laura T. “The Evolution of Shareholder Activism in the United States”. Journal of Applied Corporate Finance 19/1 (2007), 55-73. http://dx.doi.org/10.2139/ssrn.959670
• Goranova, Maria – Verstegen Ryan, Lori. “Shareholder Activism: A Multidisciplinary Review”. Journal of Management 40/5 (2014), 1230-1268. https://doi.org/10.1177/0149206313515519
• Graßl, Bernd – Nikoleyczik, Tobias. “Shareholder Activism und Investor Activism”. Die Aktiengesellschaft (AG) 62/3 (2017), 49-58. https://doi.org/10.9785/ag-2017-0303
• Gröntgen, Florian. Operativer Shareholder Activism: Eine rechtliche Analyse des Zusammenspiels von aktivistischen Aktionären und Verwaltungsorganen unter Einbeziehung von Aktionärsrechterichtlinie und ARUG II (RegE). Köln: Carl Heymanns Verlag, 2020.
• Gürel, Murat. Anonim Şirketin Kendi Paylarının İktisabı Amacıyla Finansal Destek Verme Yasağı. Ankara: Banka ve Ticaret Hukuku Araştırma Enstitüsü Yayınları, 2014.
• Haan, Sarah C. “Civil Rights and Shareholder Activism: SEC v. Medical Committee for Human Rights”. Washington and Lee Law Review 76/3 (2019), 1167-1227.
• Hacımahmutoğlu, Sibel. “Ortaklığın Kontrolü Pazarı Teorisi ve Ortaklık Yöneticileri Üzerindeki Etkisi”. Banka ve Ticaret Hukuku Dergisi (BATİDER) 23/3 (2006), 257-289.
• Hardesty, Linda. “After shaking up AT&T, Elliott Management divests its stake”. Fierce Network (17 Kasım 2020), https://www.fierce-network.com/operators/after-shaking-up-at-t-elliott-management-divests-its-stake
• Hartmann, Marion D. Shareholder Activism: Benefits and Drawbacks. Berlin: Peter Lang Verlag, 2014.
• Hawkins, Jennifer - Del Guercio, Diane. “The Motivation and Impact of Pension Fund Activism”. Journal of Financial Economics 52 (1999), 293-340. https://doi.org/10.1016/S0304-405X(99)00011-2
• Hirschman, Albert O. Exit, Voice and Loyalty: Responses to Decline in Firms, Organizations, and States. Cambridge: Harvard University Press, 1970.
• Herfs, Achim. “Aktionärsaktivismus in Deutschland – wie Hedgefonds Einfluss auf M&A-Transaktionen nehmen”. M&A Review 09/30. Jg. (2019).
• Jannson, Andreas. “No Exit!: The Logic of Defensive Shareholder Activism”. Corporate Board: Role, Duties and Composition Journal 10/ 2 (2014), 16-31. https://doi.org/10.22495/cbv10i2art2
• Jensen, Michael C. – Meckling, William H.. “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure”. Journal of Financial Economics 3/4 (1976), 305-360. https://doi.org/10.2139/ssrn.94043
• Kahan, Marcel – Rock, Edward B. “Hedge Funds in Corporate Governance and Corporate Control”. University of Pennsylvania Law Review 155/5 (2005), 1021-1093. https://doi.org/10.4324/9781315574288-9
• Karpoff, Jonathan M. “The Impact of Shareholder Activism on Target Companies: A Survey of Empirical Findings”. Governance i praksis: Internasjonalt Seminar (2001).
• Kaşak, Esra. Anonim Şirketlerde Genel Kurul ile Yönetim Kurulu Arasındaki Yetki Dağılımına İlişkin Temel Esaslar. İstanbul: On İki Levha Yayıncılık, 2019.
• Kestler, Mathias vd. “Distressed Debt Investments-Insolvenzrechtliche Instrumentarien der Unternehmenssanierung über Fremdkapital”. Neue Zeitschrift für das Recht der Insolvenz und Sanierung (NZI) 8 (2005), 419-422.
• Klein, April – Zur, Emanuel. “Entrepreneurial Shareholder Activism: Hedge Funds and Other Private Investors”. The Journal of Finance 64/1 (2009), 187-229. https://doi.org/10.1111/j.1540-6261.2008.01432.x
• Klingebiel, Norbert – Klingebiel, Maximilian. “Institutionelle Investoren und Strategien des Shareholder Activism”. Wissenschaftliche Beiträge (WiSt) 6 (2022), 4-10. https://doi.org/10.15358/0340-1650-2022-6-4
• La Monica, Paul R., “Activist investor takes a big stake in AT&T, pushing for spinoffs and major changes”. CNN Business (9 Eylül 2019). https://www.cnn.com/2019/09/09/media/att-elliott-management
• Lipton, Martin. “Empiricism and Experience; Activism and Short-Termism; The Real World of Business”. The Columbia Law School’s Blog on Corporations and the Capital Markets (The CLS Blue Sky Blog), (Erişim 19 Aralık 2024), https://clsbluesky.law.columbia.edu/2013/10/28/empiricism-and-experience-activism-and-short-termism-the-real-world-of-business/
• Manavgat Çağlar. Aleni Pay Alım Teklifi (Tender-Offer, Takeover-Bid). Ankara: Sermaye Piyasası Kurulu Yayınları, 1997.
• Manavgat, Çağlar. Halka Açık Anonim Ortaklıklar ve Halka Arz. Ankara: Banka ve Ticaret Hukuku Araştırma Enstitüsü Yayınları, 2016.
• Manne, Henry G. “Cash Tender Offers for Shares: A Reply to Chairman Cohen”. Duke Law Journal 2 (1967), 231-253.
• Manne, Henry G. “Mergers and the Market for Corporate Control”. Journal of Political Economy 73/2 (1965), 110-120.
• McCahery, Joseph A. - Vermeulen Erik P.M. “Private Equity and Hedge Fund Activism: Explaining the Differences in Regulatory Responses”. European Business Organization Law Review 9 (2008), 535-578. https://doi.org/10.1017/S1566752908005351
• Mietzner, Mark – Schweizer, Denis. “Hedge Funds Versus Private Equity Funds as Shareholder Activists in Germany—Differences in Value Creation”. Journal of Economics and Finance 38 (2014), 181-208. https://doi.org/10.1007/s12197-011-9203-x
• Mülbert, Peter O. “Rechtsschutzlücken bei Short Seller-Attacken – und wenn ja, welche”. Zeitschrift für das gesamte Handelsrecht und Wirtschaftsrecht (ZHR) 182 (2018), 105-107.
• Nilsson, Gül Okutan. Sermaye Piyasası Hukukunda Birleşme Amaçlı Ortaklık. İstanbul: On İki Levha Yayıncılık, 2016.
• Olson, Mancur. The Logic of Collective Action: Public Goods and the Theory of Groups. Cambridge: Harvard University Press, 1971.
• Paslı, Ali. Anonim Ortaklığın Devralınması. İstanbul: Vedat Kitapçılık, 2009.
• Pasour Jr., Ernest C. “The Free Rider as a Basis for Government Intervention”. The Journal of Libertarian Studies 5/4, 453-464.
• Pulaşlı, Hasan. Şirketler Hukuku Şerhi. Ankara: Adalet Yayınları, 5. Basım, 2024.
• Rho, Han-Kyun. “On Defining Shareholder Activism: Exploring the Terrain for Research”. Corporate Ownership & Control 4/2 (2006-2007), 304-311. https://doi.org/10.22495/cocv4i2c2p7
• Rose, Paul – Sharfman Bernard S.. “Shareholder Activism as a Corrective Mechanism in Corporate Governance”. Brigham Young University Law Review 5 (2014), 1015-1065. https://doi.org/10.2139/ssrn.2324151
• Sakarya, Şakir. “Hissedar Değeri ve Hesaplaması Üzerine Bir Uygulama”. Muhasebe ve Finansman Dergisi 40 (2008), 175-184.
• Schmolke, Klaus U. “Institutionelle Anleger und Corporate Governance-Traditionelle institutionelle Investoren vs. Hedgefonds”. Zeitschrift für Unternehmens- und Gesellschaftsrecht (ZGR) 36/5 (2007), 702-742. https://doi.org/10.1515/zgr.2007.031
• Schockenhoff, Martin - Culmann Johannes. “Shareholder Activism in Deutschland”. Zeitschrift für Wirtschaftsrecht (ZIP) (2015), 297-302.
• Sharfman, Bernard S. “Activist Hedge Funds In A World of Board Independence: Creators or Destroyers of Long-Term Value?” Columbia Business Law Review 3 (2015), 813–860. https://doi.org/10.7916/cblr.v2015i3.1762
• Solak, Ekrem. “Birleşik Krallık ve Avrupa Birliği Hukukları Kapsamında Pay Sahibi Aktivizmi Düzenlemeleri”. Yeditepe Üniversitesi Hukuk Fakültesi Dergisi 16/ 2 (2019), 127-162.
• Steifert, Werner G. – Voth, Hans-Joachim. Invasion der Heuschrecken: Intrigen - Machtkämpfe – Marktmanipulation. Berlin: Econ Verlag, 2006.
• Tekinalp, Ünal. “Anonim Ortaklıklara İlişkin Yeni Hukuk Politikalarının ve Yönetim - Denetim Felsefelerinin Dinamikleri ile Bunlar Arasındaki İlişki”. Prof. Dr. Turgut Kalpsüz'e Armağan, ed. Tuğrul Ansay, 229. Ankara: Turhan Kitabevi, 2003.
• Tekinalp, Ünal. Halka Açık Anonim Ortaklıklarda Yönetime Katılma Sorunları. İstanbul: İstanbul Üniversitesi Yayınları, 1979.
• Tekinalp, Ünal vd. Ortaklıklar Hukuku. İstanbul: Vedat Kitapçılık, 14. Basım, 2019.
• Wenninger, Thomas G. Hedge Fonds im Spannungsfeld des Aktien- und Kapitalmarktrechts: Shareholder Activism und aktienrechtliche Corporate Governance. Baden-Baden: Nomos Verlag, 2009.
• Wymeersch, Eddy. “Shareholder(s) Matter(s).” Unternehmen, Markt und Verantwortung: Festschrift für Klaus J. Hopt zum 70. Geburtstag, ed. Stefan Grundmann vd., Berlin: De Gruyter, 2010, 1587-1610.
• Yavillioğlu, Cengiz – Delice, Güven. “Tezgâh Üstü Türev Piyasaları: Bir Değerlendirme”. Maliye Dergisi 151 (2006), 63-84.
• Yatağan Özkan, Çiğdem. “Anonim Şirketlerde Pay Sahibi Anlayışındaki Değişimler ve Kısa Vadecilik Akımına Bir Çözüm Önerisi Olarak Sadakat Payları”. Banka ve Ticaret Hukuku Dergisi (BATİDER) 32/3, 155-187.
• Yıldız, Tuba Ertugay. Hedge Fonların İşleyişi. Sermaye Piyasası Kurulu Denetleme Dairesi, Yeterlik Etüdü, 2004.