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Hedge Fund Activism Canadian Style

68 Pages Posted: 21 Jan 2013 Last revised: 27 Mar 2013

Brian R. Cheffins

University of Cambridge - Faculty of Law; European Corporate Governance Institute (ECGI)

Date Written: January 1, 2013

Abstract

The forthright brand of shareholder activism hedge funds deploy became during the 2000s a significant feature of Canadian corporate governance. This paper examines hedge fund activism “Canadian style.” The paper characterizes the interventions hedge funds specialize in as “offensive” shareholder activism and uses a heuristic device, “the market for corporate influence”, to identify the variables that dictate how frequent such activism is likely to be. This analytical structure is used to explain why hedge fund activism has become part of the Canadian corporate governance landscape and has displaced at least partly a Canadian shareholder “culture of passivity.”

Keywords: Shareholder activism, hedge funds, Canada

JEL Classification: G34, G38, K22, N22

Suggested Citation

Cheffins, Brian R., Hedge Fund Activism Canadian Style (January 1, 2013). ECGI - Law Working Paper No. 202; University of Cambridge Faculty of Law Research Paper No. 3/2013. Available at SSRN: https://ssrn.com/abstract=2204294 or http://dx.doi.org/10.2139/ssrn.2204294

Brian R. Cheffins (Contact Author)

University of Cambridge - Faculty of Law ( email )

10 West Road
Cambridge, CB3 9DZ
United Kingdom
+44 1223 330084 (Phone)
+44 1223 330055 (Fax)

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

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