Hedge Fund Activism and Corporate M&A Decisions
| Autor: | Szu-Yin Wu, Kee H. Chung |
|---|---|
| Rok vydání: | 2022 |
| Předmět: |
Selection bias
050208 finance business.industry Strategy and Management media_common.quotation_subject Corporate governance 05 social sciences Event study Financial system Management Science and Operations Research Hedge fund 0502 economics and business Mergers and acquisitions Business 050207 economics Stock (geology) media_common |
| Zdroj: | Management Science. 68:1378-1403 |
| ISSN: | 1526-5501 0025-1909 |
| DOI: | 10.1287/mnsc.2020.3934 |
| Popis: | This paper shows that hedge fund activism is associated with a decrease in mergers and acquisitions (M&A) and offer premiums and an increase in stock and operating performance. Activist hedge funds improve target firms’ M&A performance by reducing poor M&A, diversifying M&A, and the M&A of firms with multiple business segments. Activist hedge funds improve target firms’ M&A decisions by influencing their governance practices. We show that our results are unlikely driven by selection bias. Overall, activist hedge funds play an important role in the market for corporate control by increasing the efficiency of target firms’ M&A activities through interventions. This paper was accepted by Gustavo Manso, finance. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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