Brick or Treat : Shareholder Activism and Corporate Leasing

This paper studies the role of shareholder activism on corporate leases. We find that the presence of shareholder activists is associated with large increases in leasing. This association is stronger in periods of high real estate prices and for firms with larger amounts of real estate assets. We also find that higher leasing in the presence of activist investing is accompanied by higher dividend payments and lower investment. The leasing activity associated with shareholder activism is less common when the target firm is acquired or when there is a proxy fight. Finally, we find little evidence that this type of activism is related to corporate governance characteristics