~and~ Vanderbilt University Law & economic science Research Paper No. 07-28
manipulate computer memory Activism, Corporate Governance, and Firm Performance
ALON BRAV Duke University - Fuqua nurture of Business WEI JIANG capital of South Carolina Business civilize - Finance and Economics Division RANDALL S. THOMAS Vanderbilt University - School of Law; Vanderbilt University - Owen Graduate School of Management FRANK PARTNOY University of San Diego - School of Law
This paper can be downloaded without charge from the Social Science Research Network electronic Paper Collection: http://ssrn.com/abstract=948907
FDIC Center for pecuniary Research Working Paper No. 2008-06
Hedge Fund Activism, Corporate Governance, and Firm Performance
May 2008
The views expressed here atomic number 18 those of the author(s) and not necessarily those of the federal Deposit Insurance Corporation
Federal Dposit Insurance Corporation Center for Financial Research h
Hedge Fund Activism, Corporate Governance, and Firm Performance
Alon Brav, Wei Jiang, Frank Partnoy, and Randall Thomas* ABSTRACT
exploitation a large hand-collected dataset from 2001 to 2006, we find that activist hedge bullion in the U.S.
propose strategic, operational, and financial remedies and attain success or partial success in two thirds of the cases. Hedge coin 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.
JEL Classification: G14, G23, G3. Keywords: Hedge Fund, Activism, Corporate Governance.
* Brav: Duke University, Durham, NC 27708, Tel: (919) 660-2908, email: brav@duke.edu. Jiang: Columbia University, New York,...If you want to get a full essay, vow it on our website: Orderessay
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