Disciplining Role of Short Sellers: Evidence From M&amp;A Activity

Shi, Wei; Ndofor, Hermann Achidi; Hoskisson, Robert E.

doi:10.1177/0149206320912307

Cited by 21 publications

(12 citation statements)

References 145 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Independent variable. We measure our independent variable, short interest, consistent with previous studies (Connelly et al, 2021;Shi et al, 2018Shi et al, , 2021b. We first calculate the monthly ratio of shorted shares to the total number of shares outstanding for a given firm in a month.…”

Section: Methodsmentioning

confidence: 99%

Internationalization under attack: the external threat of short sellers

Drori²

2023

MBR

View full text Add to dashboard Cite

Purpose The purpose of this paper is to examine the role of short sellers in foreign direct investment (FDI) decisions. Drawing on threat rigidity theory, the authors argue that short sellers pose a threat to chief executive officers (CEOs) by exerting downward pressure to target firms’ stock prices. That threat will evoke rigid managerial responses that hinder new FDI activities. The authors also posit that CEOs will be less reactive to short sellers’ threats when they are generalist CEOs who have extensive general work experience or when they serve as the board chair. Design/methodology/approach The authors collect data from S&P 1,500 firms, and the final sample consists of 717 firms and 6,930 firm-year observations from 1998 to 2016. The authors use an Arellano and Bond generalized method of moments static linear probability panel data model and an instrumental panel count data model to test the hypotheses. Findings The findings support the hypotheses and suggest that CEOs who are under more pressure from short sellers engage in fewer new FDI activities. The negative impact of short sellers on FDI decisions is less salient when CEOs have general work experience or are the chairperson of the board. Originality/value This study contributes to the international business research by stressing the need to consider the role of short sellers in firm internationalization decisions.

show abstract

Section: Methodsmentioning

confidence: 99%

Internationalization under attack: the external threat of short sellers

Drori²

2023

MBR

View full text Add to dashboard Cite

show abstract

“…Because strategic action intensity is a count variable, we use firm fixed-effects Poisson regressions when testing the effects of hedge fund (corporate shareholder) activism on this dependent variable. We select firm fixed-effects Poisson regressions over fixed-effects negative binomial regressions because the latter cannot control for time-variant firm heterogeneity (Allison, 2009; Shi, Ndofor, & Hoskisson, 2021). As strategic action complexity is a continuous variable, we use firm fixed-effects ordinary least squares (OLS) regressions to test hypotheses related to this dependent variable.…”

Section: Methodsmentioning

confidence: 99%

Different Horizons: The Effects of Hedge Fund Activism Versus Corporate Shareholder Activism on Strategic Actions

DesJardine

Shi

Sun

2021

Journal of Management

Self Cite

View full text Add to dashboard Cite

How do firms alter their strategic actions when targeted by different types of activist shareholders? We argue that hedge fund activists threaten firms in ways that lead them to conserve resources and to scale back and simplify their strategic actions, which refer to long-run competitive actions requiring substantial investment. By comparison, corporate shareholder activists bestow firms with new resources and freedoms that increase their flexibility to expand and complexify their strategic actions. Using a matched sample and difference-in-differences methodology, we find support for our theory: Firms targeted by hedge fund activists decrease the intensity and complexity of their strategic actions, while firms targeted by corporate shareholder activists increase the intensity and complexity of those actions. Our study contributes to research on shareholder governance and competitive dynamics by highlighting the differential effects of activist shareholders on targeted firms’ strategic actions.

show abstract

“…Low-paid workers disproportionately bear the pain of new technology as this cohort lacks the basic knowledge to operate unconventional machinery and are not often chosen for the training to operate such advanced machinery (Park-Poaps et al, 2020). Workers in developing countries have normally less skilled compared to advanced countries and hence they are potentially at high risk of automation (Chitturu et al, 2017;Gunarathne et al, 2018;Shi et al, 2021). Despite some positive economic impacts, automation has a huge displacing effect in developing countries with almost no evidence (Cal ı and Presidente, 2021).…”

mentioning

confidence: 99%

Human resource development 4.0 (HRD 4.0) in the apparel industry of Bangladesh: a theoretical framework and future research directions

Alam

Dhamija

2022

IJM

View full text Add to dashboard Cite

PurposeThe transition from Industry 3.0 to the fourth industrial revolution was a big jump that created a vacuum in many developing countries. Drawing upon institutional theory and resource-based view theory, the current study proposes a theoretical model linking the institutional pressures and resources (workforce skills) in context to the apparel industry of Bangladesh.Design/methodology/approachThis study adopts a qualitative approach involving 20 semi-structured interviews, followed by thematic analysis using NVivo 12 software. The researchers impose both deductive and inductive thematic analysis to generate themes. The data analysis involves various stages applying the phenomenological approaches.FindingsInstitutional pressures (coercive) positively influences the workforce skills (technical and managerial) in the fourth industrial revolution in Bangladesh apparel manufacturing industry; institutional pressures (normative) is positively related to the workforce skills (technical and managerial) in 4IR in Bangladesh apparel manufacturing industry; institutional pressures (mimetic) has shown a positive association with the workforce skills (technical and managerial) in 4IR in Bangladesh apparel manufacturing industry; workforce skills (technical and managerial) are positively influencing the development of human resource capabilities in fourth industrial revolution in Bangladesh apparel manufacturing industry.Originality/valueThis paper is the first of its kind to offer a thematic analysis on human resource development 4.0 in the apparel industry of Bangladesh. The study provides an understanding of the role of institutional pressure on workforce skill development and the adoption of 4IR technology.

show abstract

Disciplining Role of Short Sellers: Evidence From M&A Activity

Cited by 21 publications

References 145 publications

Internationalization under attack: the external threat of short sellers

Internationalization under attack: the external threat of short sellers

Different Horizons: The Effects of Hedge Fund Activism Versus Corporate Shareholder Activism on Strategic Actions

Human resource development 4.0 (HRD 4.0) in the apparel industry of Bangladesh: a theoretical framework and future research directions

Contact Info

Product

Resources

About