The Color of Hedge Fund Activism

• 成果类型: Article
• 署名作者: Chu, Yongqiang; Huang, Bo; Zhang, Chengsi
• 署名单位: University of North Carolina; University of North Carolina Charlotte; University of North Carolina; University of North Carolina Charlotte; Renmin University of China; Renmin University of China
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2022.03452
• 发表日期: 2025
• 关键词: HEDGE FUND ACTIVISM; racial gap; lending discrimination; mortgage

摘要

The racial disparity in mortgage approval rates decreases by four percentage points as a result of hedge fund activism targeting banks. Target banks experience a higher turnover of mortgage officers and open new bank branches in areas with greater racial disparities in mortgage approval rates. We show that the results are driven by hedge fund activists' efforts to increase profitability and comply with the community reinvestment act. Our results suggest that hedge funds' incentives to maximize shareholder value do not necessarily lead to a negative impact on other stakeholders.