Hedge fund activism, corporate governance, and firm performance
Publication
, Journal Article
Brav, A; Jiang, W; Partnoy, F; Thomas, R
Published in: Journal of Finance
August 1, 2008
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. © 2008 The American Finance Association.
Duke Scholars
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Published In
Journal of Finance
DOI
EISSN
1540-6261
ISSN
0022-1082
Publication Date
August 1, 2008
Volume
63
Issue
4
Start / End Page
1729 / 1775
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment
Citation
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Brav, A., Jiang, W., Partnoy, F., & Thomas, R. (2008). Hedge fund activism, corporate governance, and firm performance. Journal of Finance, 63(4), 1729–1775. https://doi.org/10.1111/j.1540-6261.2008.01373.x
Brav, A., W. Jiang, F. Partnoy, and R. Thomas. “Hedge fund activism, corporate governance, and firm performance.” Journal of Finance 63, no. 4 (August 1, 2008): 1729–75. https://doi.org/10.1111/j.1540-6261.2008.01373.x.
Brav A, Jiang W, Partnoy F, Thomas R. Hedge fund activism, corporate governance, and firm performance. Journal of Finance. 2008 Aug 1;63(4):1729–75.
Brav, A., et al. “Hedge fund activism, corporate governance, and firm performance.” Journal of Finance, vol. 63, no. 4, Aug. 2008, pp. 1729–75. Scopus, doi:10.1111/j.1540-6261.2008.01373.x.
Brav A, Jiang W, Partnoy F, Thomas R. Hedge fund activism, corporate governance, and firm performance. Journal of Finance. 2008 Aug 1;63(4):1729–1775.
Published In
Journal of Finance
DOI
EISSN
1540-6261
ISSN
0022-1082
Publication Date
August 1, 2008
Volume
63
Issue
4
Start / End Page
1729 / 1775
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment