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Returns to hedge fund activism: an international study

Journal

Review of Financial Studies

Subject

Finance

Publishing details

Review of Financial Studies 2017 Vol 30:9 p 2933-2971

Authors / Editors

Becht M;Franks J;Grant J;Wagner H

Biographies

Julian Franks

Publication Year

2017

Abstract

This paper provides evidence on the incidence, characteristics, and performance of activist engagements across countries. We find that the incidence of activism is greatest with high institutional ownership, particularly for U.S. institutions. We use a sample of 1,740 activist engagements across 23 countries and find that almost one-quarter of engagements are by multi-activists engaging the same target. These engagements perform strikingly better than single activist engagements. Engagement outcomes, such as board changes and takeovers, vary across countries and significantly contribute to the returns to activism. Japan is an exception, with high initial expectations and low outcomes.

Publication Notes

Winner of CAMRI Prize in Asset Management

Available on ECCH

No


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