Green Hedge Fund Activists
32 Pages Posted: 27 Dec 2019
Date Written: December 6, 2019
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: Suggested Citation