Activist Investors Are Entering New Geographies
Map Provides Insights to Regulatory Framework, Activism Vitals, Campaign Levels and Most Engaged Activists in 14 Countries
Research Classifies Shareholder Activism Threat Level by Jurisdiction
WASHINGTON, Oct. 05, 2016 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE:FCN), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, published its interactive Global Shareholder Activism Map, which shows that 2016 is on track to be a record year for activism outside the United States.
FTI Consulting’s research shows that shareholder activism is gaining momentum and geographic breadth. The analysis reveals that more than 300 activism campaigns are expected to take place outside the United States this year, compared to only 70 non-U.S. activist campaigns in 2010.
To measure the potential risk in each jurisdiction, FTI Consulting created an index to track activism threat level by country and map key activists within each location.
“As shareholder activism becomes increasingly global, it is important to understand the jurisdictional differences and various levels of activist exposure by country. This map provides a tool for understanding market and regulatory conditions that will affect activism levels and which activists may target a specific jurisdiction,” said Steven Balet, Head of Corporate Governance and Activist Engagement at FTI Consulting. “I expect future updates to the FTI Global Shareholder Activism Map will show how governance changes are causing fewer and fewer jurisdictions to be immune from activist campaigns.”
The research shows that Canada, Australia and the United Kingdom have the highest risk for an increase in activism outside the United States. These countries have experienced changing economic factors, including a strong U.S. dollar, undervalued asset prices and increased global scrutiny of corporate governance standards.
With activist investors becoming increasingly comfortable operating in overseas regulatory environments, there is also increased activity in Continental Europe, specifically Germany and Italy.
In addition, new markets such as South Korea and Japan are emerging as activist-friendly destinations following changes in local corporate governance laws that create a much friendlier environment for shareholder activists. For example, in 2015, the Japanese government introduced a new corporate governance code aimed at making Japanese companies more attractive to investors by requiring firms to appoint at least two outside directors.
The research shows that U.S.-style shareholder activism is a growing trend with companies of different sizes, sectors and now geographies. The spectrum of activism presents boardrooms around the globe with fresh impetus to better understand shareholder activism and prepare should they be targeted.
The Strategic Communications segment of FTI Consulting conducted secondary research to map the regulatory environment of 14 critical activist investor jurisdictions. The Global Shareholder Activism Map contains activist campaign data as of July 31, 2016, sourced from Activist Insight. The map examines nearly 4,000 activist campaigns and excludes campaigns aimed at amending bylaws, as they are often automatic fillings from passive investors.
FTI Consulting developed an index to indicate country-specific activism threat levels, which encompass current campaign trends, corporate governance changes and the overall likelihood of future activism investment. Country insights include summary overviews, disclosure requirements, shareholder rights and company defense advantages/disadvantages. FTI Consulting’s Global Shareholder Activism Map will be updated regularly to reflect the most recent developments by country and highlight new trends in global activism investing. Register here for updates.
The Global Shareholder Activism Map, the full report, along with infographic and other insights on shareholder engagement and activism, can be accessed here: http://fticommunications.com/global-shareholder-activism-map/. More insights are also available at http://www.ftiactivism.com.
About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. With more than 4,600 employees located in 28 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management, strategic communications and restructuring. The Company generated $1.78 billion in revenues during fiscal year 2015. For more information, visit www.fticonsulting.com and connect with us on Twitter (@FTIConsulting), Facebook and LinkedIn.
Source:FTI Consulting, Inc.