By Cydney Posner

The WSJ reports today on a study regarding the benefits, or absence thereof, of investor activism.  The study, conducted by a professor at the Harvard Business School, concluded that activist funds are most successful when they coerce managers into selling the company; in that event, shares of the target typically rise. However, the study found that when the company is not sold, there is little change in the subsequent 18 months in the company's stock price or financial results, even when the company takes steps recommended by the activists, such as firing the CEO, buying back stock or adding new directors.

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