Hedge fund activism, corporate governance, and firm performance

• 成果类型: Article
• 署名作者: Brav, Alon; Jiang, Wei; Partnoy, Frank; Thomas, Randall
• 署名单位: Duke University; Columbia University; University of San Diego; Vanderbilt University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2008.01373.x
• 发表日期: 2008
• 页码: 1729-1775
• 关键词: SHAREHOLDER ACTIVISM; OWNERSHIP; PROPOSALS

摘要

Using a large hand-collected data set from 2001 to 2006, we find that activist hedge funds in the United States propose strategic, operational, and financial remedies and attain success or partial success in two-thirds of the cases. Hedge funds seldom seek control and in most cases are nonconfrontational. The abnormal return around the announcement of activism is approximately 7%, with no reversal during the subsequent year. Target firms experience increases in payout, operating performance, and higher CEO turnover after activism. Our analysis provides important new evidence on the mechanisms and effects of informed shareholder monitoring.