The Real Effects of Hedge Fund Activism: Productivity, Asset Allocation, and Labor Outcomes

• 成果类型: Article
• 署名作者: Brav, Alon; Jiang, Wei; Kim, Hyunseob
• 署名单位: Duke University; National Bureau of Economic Research; Columbia University; Cornell University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhv037
• 发表日期: 2015
• 页码: 2723
• 关键词: information-technology; SHAREHOLDER ACTIVISM; corporate governance; Managers; workers; MARKET; UNION

摘要

This paper studies the long-term effect of hedge fund activism on firm productivity using plant-level information from the U.S. Census Bureau. A typical target firm improves production efficiency in the 3 years after intervention, with stronger improvements in business strategy-oriented interventions. Plants sold after intervention improve productivity significantly under new ownership, suggesting that capital redeployment is an important channel for value creation. Employees of target firms experience stagnation in work hours and wages despite an increase in labor productivity. Additional tests refute alternative explanations attributing the improvement to mean reversion, management's voluntary reforms, industry consolidation shocks, or activists' stock-picking abilities.