We suggest that when analysts perceive

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A patent troll is a firm that sues opportunistically in hopes that an imperfect legal system will rule in its favor maximizing expected proceeds rather than penalties to infringement says Cohen. We also find that director election results matter for director retention directors are more likely to leave in the year following activism when they receive lower shareholder support.

Contrary to consequences on the targeted firm s board we find no evidence that directors lose seats on other boards a proxy for reputational consequences as a result of shareholder activism. Download working Chinese Overseas America Number Data paper  hbs faculty Pages item.aspx num The Impact of Corporate Social Responsibility on Investment Recommendations By Ioannou Ioannis and George Serafeim ABSTRACT—We explore the impact of corporate social responsibility CSR ratings on sell side analysts assessments of firms future financial performance.  CSR as an agency cost due to the prevalence of agency logic they produce pessimistic recommendations for firms with high CSR ratings. Moreover we theorize that over time the emergence of a stakeholder focus and the gradual weakening of the agency logic shifts the analysts perceptions of CSR ratings and results in increasingly less pessimistic recommendations.





Using a large sample of publicly traded U.S. firms over years we confirm that in the early s analysts issue more pessimistic recommendations for firms with high CSR ratings. However in subsequent years up to analysts progressively assess these firms less pessimistically and eventually they assess them optimistically. Furthermore we find that more experienced analysts and higher status brokerage houses are the first to shift the relation between CSR ratings and investment recommendation optimism. We find no significant link between firms CSR ratings and analysts forecast errors indicating that learning is unlikely to account for the observed shifts in recommendations. We discuss implications for both future research and practice.