The California Public Employees Retirement System (CalPERS) has over $ 200 billion in assets. Over the years it has gained an activist reputation. The size of investment provides it with a strong voice and the incentive to incur monitoring costs. CalPERS nudges the management and the board to act in the best interest of the shareholders. CalPERS regularly examines its portfolio and seeks change in firms that can potentially perform better. Some firms heed to this attention while those that ignore the attention end up on the focus list. This study examines the reaction of the market to the publishing of the CalPERS focus list. On one hand, an investor could interpret this news positively: A large shareholder is actively pushing management and the board, to improve operations. In the remaining sections, the literature is reviewed, we present our results and the paper ends with a discussion.
Journal of Applied Business and Economics
Ogden, W. A.,
Over-reaction to the CALPERS focus list?.
Journal of Applied Business and Economics,
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