Returns to hedge fund activism: an international study
Journal
Review of Financial Studies
Subject
Finance
Publishing details
Authors / Editors
Becht M;Franks J;Grant J;Wagner H
Biographies
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