Hedge Fund Activisms, Workplace Safety and Job Satisfaction

Abstract

We find that hedge fund activism is associated with an increase in workplace injuries per working hour, likely due to workplace restructuring, which involves more layoffs and longer working hours per employee. We also observe that employees are less satisfied and more pessimistic about future career opportunities. Our work documents the negative effects of hedge fund activism on employees, a key stakeholder of the company, in contrast to the generally positive effects on shareholder value documented in the literature.

Keywords: Hedge Fund Activism, employee satisfaction, workplace safety