Activists who win: the effect of activist identity on shareholder voting

This thesis examines the effect of shareholder activist identity on voting outcomes within the context of shareholder proposals and what explains that effect. The extant literature broadly assumes shareholder homogeneity and has focused on the relationship between activists and target firms. In contrast, this study places emphasis on intra-shareholder dynamics and demonstrates that activist identity, legitimacy and salience are central to understanding voting outcomes. A mixed methods design was employed, guided by the pragmatic paradigm. A deductive thematic analysis of media coverage produced propositions about which activist groups would be perceived as most legitimate and, therefore, most salient. These propositions were then tested using regression analyses of 3,121 voting events involving 399 activists and 940 target firms. Linear mixed models were utilised to model degrees of voting support, while generalised estimating equations assessed probabilities of success, with both methods accounting for the repeated measures nature of the data. The findings reveal that activist identity significantly affects voting outcomes. Public sector pension funds attracted the highest levels of support and the greatest probability of success, while hedge funds and individual activists displayed more mixed legitimacy dynamics. These outcomes underline the heterogeneity of activists and highlight legitimacy as a critical determinant of success. The thesis makes an original contribution by adopting and adapting stakeholder salience theory to shareholder activism, a field where it has not previously been applied. My emphasis on legitimacy is a novel approach given the broader salience research has predominantly emphasised power and urgency. An operational model of legitimacy is developed, distinguishing dynamic attributes that explain why some activist groups acquire salience while others do not. Importantly, I advance the understanding of legitimacy within the shareholder activism literature by demonstrating it is a dynamic construct rather than dichotomous. Overall, the thesis advances theoretical understanding of shareholder activism, demonstrates the importance of legitimacy in shareholder activist outcomes, and offers practical insights for both activists and target firms navigating the contested terrain of shareholder influence.

Grantor dc:publisher

UNSW, Sydney

Year dc:date

2026

Author dc:creator

• Karmelich, Damian

• shareholder activism
• corporate governance
• shareholder voting
• shareholder proposals
• shareholder legitimacy
• shareholder salience
• anzsrc-for: 350701 Corporate governance

Statement dc:rights

• open access
• CC BY 4.0
• free_to_read

Licence

• https://purl.org/coar/access_right/c_abf2
• https://creativecommons.org/licenses/by/4.0/

Language dc:language

en

Identifier

https://doi.org/10.26190/unsworks/32234

OAI identifier oai:identifier

oai:unsworks.library.unsw.edu.au:1959.4/107674