Sunday, September 12, 2010

Research Report on Shareholder Activism Makes SSRN’s Top Ten List

A paper written by Damien J. Park (Managing Partner, Hedge Fund Solutions) and Matteo Tonello (Director, Corporate Governance The Conference Board)  titled, “The Role of the Board in Turbulent Times: Avoiding Shareholder Activism”,  has recently been ranked in Social Science Research Network’s (SSRN) Top Ten download list for the topic “CGN: Boards & Directors”.

The paper provides coverage on the future, causes, and nature of shareholder activism and offers possible strategies that companies can employ to avoid it. Social Science Research Network is an online organization that acts as a clearinghouse for all scholarly research concerning business-related news and more. World-renowned financial economist, Michael Jensen, founded the organization in 1994. He is arguably best known for developing Jensen’s alpha, but has also been active in issues concerning corporate governance. His organization is a powerful resource. We encourage you to visit its site.

To download a copy of “The Role of the Board in Turbulent Times: Avoiding Shareholder Activism”, click here.

How to calculate Jensen's Alpha
Portfolio Return − [Risk Free Rate + Portfolio Beta * (Market Return − Risk Free Rate)] 

\alpha_J = R_i - [R_f + \beta_{iM} \cdot (R_M - R_f)]

BTW- congratulations to Matteo Tonello for being named to the Directorship 100 list of most influential people in corporate governance.

Posted by David Schatz