Audio Transcript Auto-generated
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today. I will talk about how Ceo gender affects support of the
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activists campaign.
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We will start from understanding who is an activist and
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then we will proceed on how the campaign goes on.
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So activists is an investor, um, a person or firm that owns shares in the company.
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It all comes with an idea.
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So they see the potential opportunity for value and then they take actions.
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Um, One of the actions is usually the most popular one is to replace Ceo.
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So they reached their demands.
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But there's real actions. They can
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talk to the executive board in which the conclusion they can threat for litigation.
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And the last one that we're going to also talk about today is public letters.
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Um, there
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was blood comes the actors were right or he was wrong.
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If he was right, then there is a gain the company gains and if he was wrong,
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there is a loss.
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Only 30% of activist campaigns succeed.
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So this is keep in mind there's two solutions to ways
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to go there again negotiated which conclusion and voila piece.
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But the other one is proxy contests to parties, the executive board and the
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activists.
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They write a public letter to the other investors and they say that what they want
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and then they fight for it.
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Usually investors,
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activists asks for um replacing the Ceo and
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putting some of their people in this position
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and the others,
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but the executive board explains
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that they were right and their moves are correct.
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So, um,
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Mhm.
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The question of the research was how the Ceo
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gender influences proxy voting behavior of retail investors,
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retail investors is just a normal person like me and you who
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bought shares and he just cares about their own personal account.
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You can see there.
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And there's several theories that actually agree that women
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are perceived less effective leaders a man and the
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its effect, it's a bias effect.
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And because of this,
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people tend to believe that women are bad leadership positions.
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There's other studies that prove that as well. Um, and so we have two hypothesis.
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The first one says that investors are more likely to take
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activist side if the firm is led by female CEO,
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which
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obvious. And the second one is that
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investor perception of access competence relative to
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the Ceo will mediate hypothesis as well,
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which means that uh, if it doesn't really matter if the gender of Ceo is a woman, if the
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gender of the main activists is also female.
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So
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the study was conducted by sending a public letter and
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they reached the results that actually this is true.
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The activists take more side of the investors take side of activists.
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If the CEO is a female more often,
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then when the CEO is a male and the difference is actually 20% which is pretty big.
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So what you can do further for this study is to consider the role of the board as well,
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not only of the Ceo and the take home
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message is in the absence of additional information,
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investors tend to render decisions that are.