Recent Advances in Research on Hedge Fund Activism: Value Creation and Identification

Posted: 11 Dec 2015

See all articles by Alon Brav

Alon Brav

Duke University - Fuqua School of Business; European Corporate Governance Institute (ECGI); National Bureau of Economic Research (NBER)

Wei Jiang

Columbia Business School - Finance and Economics; ECGI; NBER

Hyunseob Kim

Cornell University - Samuel Curtis Johnson Graduate School of Management

Date Written: December 2015

Abstract

Hedge fund activism emerged as a major force of corporate governance in the 2000s. By the mid-2000s, there were between 150 and 200 activist hedge funds in action each year, advocating for changes in 200–300 publicly listed companies in the United States. In this article, we review the evolution and major characteristics of hedge fund activism, as well as the short- and long-term impacts of the performance and governance of targeted companies. Though most of the analyses here are based on a comprehensive sample of over 2,000 activism events in the United States from 1994 to 2011, hand-collected by the authors from regulatory filings and news searches, this article covers all major studies on the topic, including those on markets outside of the United States.

Suggested Citation

Brav, Alon and Jiang, Wei and Kim, Hyunseob, Recent Advances in Research on Hedge Fund Activism: Value Creation and Identification (December 2015). Annual Review of Financial Economics, Vol. 7, pp. 579-595, 2015, Available at SSRN: https://ssrn.com/abstract=2702336 or http://dx.doi.org/10.1146/annurev-financial-111914-041751

Alon Brav (Contact Author)

Duke University - Fuqua School of Business ( email )

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European Corporate Governance Institute (ECGI) ( email )

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Belgium

National Bureau of Economic Research (NBER) ( email )

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Wei Jiang

Columbia Business School - Finance and Economics ( email )

3022 Broadway
New York, NY 10027
United States
(212) 854-5553 (Phone)

ECGI ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Hyunseob Kim

Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )

Ithaca, NY 14853
United States

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