Wings, Sports, and Activist Investors: SEC Shareholder Filings, Corporate Governance, and Shareholder Returns

ABSTRACT The proportion of public company owners actively overseeing management has decreased in recent years, empowering managers and activist investors to exert greater influence. In this case study, students will explore relationships among shareholders, activist investors, and firm executives using Marcato’s acquisition of 5.2 percent of Buffalo Wild Wings as an example. Students will use data from required SEC filings (including Forms 3, 4, 5, and 13F and Schedules 13D and 13G) to consider the role of an overt activist investor. The structure of the modern corporation, with dispersed and increasingly passive shareholders, challenges established mechanisms for corporate governance. Buffalo Wild Wings’ performance relative to competitors is explored at the time when Marcato exerted influence on management. JEL Classifications: G32; G34; M40.