How Does Past Experience Impact Hedge Fund Activism? forthcoming, Journal of Financial and Quantitative Analysis

45 Pages Posted: 6 Feb 2016 Last revised: 7 Jun 2021

See all articles by Nicole M. Boyson

Nicole M. Boyson

Northeastern University - D’Amore-McKim School of Business

Linlin Ma

Peking University HSBC Business School

Robert M. Mooradian

Northeastern University, D’Amore-McKim School of Business, Finance Area

Date Written: December 4, 2020

Abstract

Hedge fund activists transfer relevant prior work experience to their activism campaigns.
Categorizing activists based on past employment at investment banks (generalists), private equity or special situations partnerships (specialists), or other firms (non-financial experts), we relate activists’ prior work experience to their choices and outcomes. Both generalists with codifiable skills and specialists with tacit skills contribute to successful outcomes, but differences in these skills lead to differences in activism processes. Activist choices, market responses, target firm responses, and
procedural aspects of activism vary with activist identity. Our analysis examines activists’
heterogeneous skills and highlights their importance in shaping activist interventions.

Keywords: Hedge fund activism, Manager skill, Managerial Experience

JEL Classification: G30, G32, G34

Suggested Citation

Boyson, Nicole M. and Ma, Linlin and Mooradian, Robert M., How Does Past Experience Impact Hedge Fund Activism? forthcoming, Journal of Financial and Quantitative Analysis (December 4, 2020). Available at SSRN: https://ssrn.com/abstract=2727371 or http://dx.doi.org/10.2139/ssrn.2727371

Nicole M. Boyson (Contact Author)

Northeastern University - D’Amore-McKim School of Business ( email )

360 Huntington Ave.
Boston, MA 02115
617-373-4775 (Phone)

Linlin Ma

Peking University HSBC Business School ( email )

Robert M. Mooradian

Northeastern University, D’Amore-McKim School of Business, Finance Area ( email )

Boston, MA 02115
United States
617-373-5955 (Phone)
617-373-8798 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
416
Abstract Views
2,102
rank
85,901
PlumX Metrics