The Color of Hedge Fund Activism

50 Pages Posted: 25 Oct 2019 Last revised: 28 Oct 2020

See all articles by Yongqiang Chu

Yongqiang Chu

Belk College of Business, UNC Charlotte

Bo Huang

Renmin University of China - School of Finance

Chengsi Zhang

Renmin University of China - School of Finance

Date Written: October 27, 2020

Abstract

Banks targeted by hedge fund activism reduces racial disparities in mortgage approval rates and interest rates. However, racial differences in mortgage foreclosure rates do not change, suggesting that the effect is not driven by changes in risk or risk preferences. We find that target banks experience more turnovers of mortgage officers and open new bank branches to address the lending discrimination problem.

Keywords: Hedge Fund Activism, Lending Discrimination, HMDA, Mortgage

JEL Classification: G0, G21, G28, J16

Suggested Citation

Chu, Yongqiang and Huang, Bo and Zhang, Chengsi, The Color of Hedge Fund Activism (October 27, 2020). Available at SSRN: https://ssrn.com/abstract=3471193 or http://dx.doi.org/10.2139/ssrn.3471193

Yongqiang Chu (Contact Author)

Belk College of Business, UNC Charlotte ( email )

9201 University City Boulevard
Charlotte, NC 28223
United States
7046877695 (Phone)

Bo Huang

Renmin University of China - School of Finance

Ming De Main Building
Renmin University of China
Beijing, Beijing 100872
China

Chengsi Zhang

Renmin University of China - School of Finance ( email )

Room B906, Xianjin Builidng
Renmin University of China
Beijing, 100872
China

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