By
Tim C. Opler and Jonathan Sokobin*
Ohio State University and Southern Methodist University
The Council of Institutional Investors represents pension funds that collectively own over $1 trillion of financial assets. Beginning in 1991, the Council has provided a list of poorly performing firms to its members who have often targeted the listed firms in shareholder activism programs. We document the performance of 117 firms that were listed in the 1991-1994 period. In the two years after being listed, firms experienced substantial profitability and share price improvements relative to a variety of control groups. The shareholder value gains are greatest among firms that divested assets and did not announce new acquisitions.