Hedge Funds
Working Paper
The Effect of Liquidity on Governance
This paper studies the effect of stock liquidity on blockholder governance. Conditional upon acquiring a stake, liquidity reduces the likelihood that a blockholder governs through voice (intervention) – as shown by the greater propensity to file...Read more
The Regulation of Hedge Funds and Private Equity: A Case Study in the Development of the EU’s Regulatory Response to the Financial Crisis
This article examines the recent development of EU regulatory policy with respect to the alternative investment industry up to and including the adoption of a major new Directive. This Directive is just one part of a much larger package of new EU...Read more
Hedge Fund Activism in Europe
The paper analyzes 362 European activist interventions by hedge funds, focus funds and other activist investors from 2000 to 2008. The sample includes both public and private interventions. The private interventions are based upon proprietary...Read more
The Rise and Fall (?) of Shareholder Activism by Hedge Funds
Shareholder activism by hedge funds has over the past few years become a major corporate governance phenomenon. This paper puts the trend into context. The paper begins by distinguishing the “offensive” form of activism hedge funds engage in from...Read more
News
The Agency Costs of Activism: Information Leakage, Thwarted Majorities, and the Public Morality
The Agency Costs of Activism: Information Leakage, Thwarted Majorities, and the Public Morality
Few doubt that hedge fund activism has radically changed corporate governance in the United States -- for better or for worse. Proponents see...Read more
Unexpected Corporate Outcomes from Hedge Fund Activism in Japan
Unexpected Corporate Outcomes from Hedge Fund Activism in Japan
Hedge fund activism is essentially a search by funds for investment returns by putting pressure on target firms to change their corporate...Read more
Governance under the Gun: Spillover Effects of Hedge Fund Activism
Governance under the Gun: Spillover Effects of Hedge Fund Activism
Hedge fund activism has become pervasive in today’s corporate landscape. In response to activist demands, targeted firms have been shown to raise...Read more
Activism and Empire Building
Activism and Empire Building
The growing influence of activists in today’s corporate landscape has prompted financial economists to investigate the drivers of shareholder...Read more
Anti-Activist Poison Pills
Anti-Activist Poison Pills
Hedge funds have become active in corporate governance. They push for changes in strategy and the adoption of specific business plans. Their...Read more
Long-Term Economic Consequences of Hedge Fund Activist Interventions
Long-Term Economic Consequences of Hedge Fund Activist Interventions
Over the past 20 years, hedge fund activism has become a powerful mechanism for influencing companies. Regulators, the business community, and the...Read more