Eyes on the Ball: Activist Campaigns and Operational Competitiveness (Lungeanu & Wiersema, 2024)

07/01/2025 16 min Temporada 1

Listen "Eyes on the Ball: Activist Campaigns and Operational Competitiveness (Lungeanu & Wiersema, 2024)"

Episode Synopsis

Welcome to Revise and Resubmit, the podcast where we dissect groundbreaking academic research to uncover the insights that shape our world. I'm your host, and today, we’re diving into a study that takes us into the boardrooms and operational floors of some of the most influential companies in the world.
Today's episode centers around a compelling research article titled "Eyes on the Ball: Activist Campaigns and Management’s Response at the Operational Level," authored by Razvan Lungeanu and Margarethe Wiersema. Published on December 29, 2024, in the prestigious Journal of Management, this paper is a must-read for anyone interested in the dynamics of corporate governance and investor activism. The Journal of Management, an FT50 journal, stands among the top 50 business journals globally, as recognized by the Financial Times.
So, what happens when activist investors set their sights on a company? Do their campaigns merely shake up the boardroom, or do they ripple down to the operational core of the organization? This research takes a unique angle by focusing not just on high-level strategic decisions but on how these campaigns influence the day-to-day operational competitiveness of targeted firms.
The findings are fascinating: firms under activist pressure don't just streamline at the corporate level; they actively seek new ways to enhance operational efficiency and effectiveness. The study employs rigorous methods like difference-in-differences research design and propensity score matching to ensure robust comparisons between targeted and non-targeted firms. It's a deep dive into how short-term tactics can lead to significant operational improvements, even when substantial resources are involved.
Before we dig deeper, let’s take a moment to thank Razvan Lungeanu and Margarethe Wiersema for their invaluable contribution, and Sage Publishing for bringing this important research to light. The Journal of Management continues to uphold its reputation as a leading source of scholarly excellence.
As we explore the implications of this study, consider this: Could the pressure from activist investors actually be a catalyst for positive operational change? Stay tuned, and don’t forget to subscribe to "Revise and Resubmit" on Spotify, Amazon Prime, and Apple Podcast. Also, check out our YouTube channel "Weekend Researcher" for more insightful content. Join us as we uncover the hidden dynamics of corporate strategies and their real-world impacts.
So, what’s next for firms caught in the crosshairs of activist investors? Let’s find out.
Reference
Lungeanu, R., & Wiersema, M. (2024). Eyes on the Ball: Activist Campaigns and Management’s Response at the Operational Level. Journal of Management. https://doi.org/10.1177/01492063241305053
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