Hedge Fund Activism: A Review
Duke University - Fuqua School of Business
Columbia Business School - Finance and Economics
Cornell University - Samuel Curtis Johnson Graduate School of Management
February 12, 2010
Foundations and Trends in Finance, Vol. 4, No. 3, 2009
This article reviews shareholder activism by hedge funds. We first describe the nature and characteristics of hedge fund activism, including the objectives, tactics, and choices of target companies. We then analyze possible value creation brought about by activist hedge funds, both for shareholders in the target companies and for investors in the hedge funds. The evidence generally supports the view that hedge fund activism creates value for shareholders by effectively influencing the governance, capital structure decisions, and operating performance of target firms.
Number of Pages in PDF File: 64
Keywords: Hedge Fund, Shareholder Activism, Corporate Governance
JEL Classification: G30, G32Accepted Paper Series
Date posted: February 12, 2010 ; Last revised: July 25, 2011
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