Green Hedge Fund Activists

32 Pages Posted: 27 Dec 2019

See all articles by Yongqiang Chu

Yongqiang Chu

Belk College of Business, UNC Charlotte

Daxuan Zhao

School of Business, Renmin University of China

Date Written: December 6, 2019

Abstract

We examine the environmental impact of hedge fund activism. We find that firms targeted by hedge fund activism reduce toxic chemical emissions. In particular, target firms close heavy polluting plants and investing in green pollution-reduction technologies to reduce toxic emissions. We also find that target firms with the larger decreases in toxic chemical emissions experience higher stock returns after activism.

Keywords: Hedge Fund Activism, Environment, Pollution, Green Technology

JEL Classification: G23, G34, Q53

Suggested Citation

Chu, Yongqiang and Zhao, Daxuan, Green Hedge Fund Activists (December 6, 2019). Available at SSRN: https://ssrn.com/abstract=3499373 or http://dx.doi.org/10.2139/ssrn.3499373

Yongqiang Chu (Contact Author)

Belk College of Business, UNC Charlotte ( email )

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

Daxuan Zhao

School of Business, Renmin University of China ( email )

59 Zhongguancun Street
Beijing, 100872
China

HOME PAGE: http://daxuanzhao.weebly.com/

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