Abstract
This study investigates the impact of retail shareholder activism on firm level investment efficiency. I find the online activism significantly improve firms' investment efficiency, and this effect is primarily driven by the mitigation of under-investment problem. The results are valid to a series of robust tests. Mechanism analysis indicates that retail shareholder activism mainly plays its role by disciplining hedonic managers and reducing information asymmetry. Finally, I find the impact is heterogeneous according to the characteristics of the activity and firm's responses. Collectively, the findings help to understand the governance effect of retail shareholder activism in weak investor protection countries.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
