Chongwu Xia, Philipp Meyer-Doyle
Prior research has highlighted how shareholder activism can economically benefit shareholders of targeted firms and economically disadvantage other stakeholders. Our study explores a more direct impact on stakeholders, namely how activist institutional ownership influences the rate of injury and illness among the employees of targeted firms. We contend that greater activist institutional ownership can adversely affect the health of employees at targeted firms. Further, we theorize that the political ideology of the activist investor and the board as well as the board's ideological diversity influence how competing stakeholder interests are resolved. Using establishment-level data, we find support for our theory. © AoM 2021.All right reserved.
International Institute of Finance, School of Management, University of Science and Technology of China, Hefei, 230026, China; INSEAD, Singapore
