Reputation and investor activism: A structural approach

We measure the impact of reputation for proxy fighting on investor activism by estimating a dynamic model in which activists engage sequence target firms. Our estimation produces an evolving each activist and quantifies its campaign frequency outcomes. find that high initiate 3.5 times as many campaigns extract 85% more settlements from targets, reputation-building incentives explain 20% initiations 19% fights. estimates indicate these effects combine to nearly double value adds shareholders.