Hedge Fund Activism and Corporate Governance: The State of the Art

2008 ◽  
Author(s):  
Faysal Barrachdi
Keyword(s):  
Corporate Governance ◽  
State Of The Art ◽  
Hedge Fund ◽  
The State ◽  
Hedge Fund Activism

Corporate governance and hedge fund activism

2011 ◽  
Vol 14 (2) ◽  
pp. 169-204 ◽  
Author(s):  
Nicole M. Boyson ◽  
Robert M. Mooradian
Keyword(s):  
Corporate Governance ◽  
Hedge Fund ◽  
Hedge Fund Activism

scholarly journals Unexpected corporate outcomes from hedge fund activism in Japan

2018 ◽  
Vol 18 (1) ◽  
pp. 31-52 ◽  
Author(s):  
John Buchanan ◽  
Dominic H Chai ◽  
Simon Deakin
Keyword(s):  
Corporate Governance ◽  
Global Financial Crisis ◽  
Hedge Fund ◽  
Management Effectiveness ◽  
Managerial Decisions ◽  
Country Level ◽  
The Usa ◽  
Market Perception ◽  
Hedge Fund Activism ◽  
The Global Financial Crisis

Abstract Hedge fund activism has been identified in the USA as a driver of enduring corporate governance change and market perception. We investigate this claim in an empirical study to see whether activism produced similar results in Japan in four representative areas: management effectiveness, managerial decisions, labour management and market perception. Experience from the USA would predict positive changes at Japanese target companies in these four areas. However, analysis of financial data shows that no enduring changes were apparent in the first three areas, and that market perception was consistently unfavourable. Our findings demonstrate that the same pressures need not produce the same results in different markets. Moreover, while the effects of the global financial crisis should not be ignored, we conclude that the country-level differences in corporate governance identified in the varieties of capitalism literature are robust, at least in the short term.

Analysis of IT Governance on Spanish Organizations

2010 ◽  
pp. 439-455
Author(s):  
Alberto J. Arroyo ◽  
José D. Carrillo Verdún
Keyword(s):  
Corporate Governance ◽  
State Of The Art ◽  
It Governance ◽  
The State ◽  
Maximum Value ◽  
The Status

Corporate governance is a key element today in organizations and companies. IT Governance, as a part of corporate governance, plays its role in aligning IT with the business and obtaining the maximum value, minimizing the risks. Several frameworks and guidelines have been published in order to set the basis for this discipline. The recent release of the ISO 38500 (ISO 2008) ads an effort to standardize the different elements of IT governance. Despite these efforts, none of the different frameworks or guidelines is focused on the specific characteristics of small and medium companies (SMOs), although the authors consider that their conclusions are universal. Furthermore, there is no research so far that analyzed the status of IT governance in Spanish organizations. The aim of this work is to do a research to identify the state of the art of IT governance in the Spanish small and medium organizations.

State of the Art: A Review Essay on Comparative Corporate Governance: The State of the Art and Emerging Research

2000 ◽  
Vol 48 (3) ◽  
pp. 501 ◽  
Author(s):  
John W. Cioffi ◽  
Klaus J. Hopt ◽  
Hideki Kanda ◽  
Mark J. Roe ◽  
Eddy Wymeersch ◽  
...  
Keyword(s):  
Corporate Governance ◽  
Review Essay ◽  
State Of The Art ◽  
The State ◽  
Comparative Corporate Governance

scholarly journals Hedge Fund Activism, Corporate Governance, and Firm Performance

2008 ◽  
Vol 63 (4) ◽  
pp. 1729-1775 ◽  
Author(s):  
ALON BRAV ◽  
WEI JIANG ◽  
FRANK PARTNOY ◽  
RANDALL THOMAS
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Hedge Fund ◽  
Hedge Fund Activism

The preventive effect of hedge fund activism: investment, CEO compensation and payout policies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Caroline Heqing Zhu
Keyword(s):  
Corporate Governance ◽  
Mutual Fund ◽  
Ceo Compensation ◽  
Hedge Fund ◽  
Managerial Compensation ◽  
Standard Deviation Increase ◽  
Corporate Policy ◽  
Investment Policies ◽  
Content Type ◽  
Hedge Fund Activism

PurposeThe purpose of this paper is to examine the effectiveness of hedge fund activism (HFA) in preventing corporate policy deviations.Design/methodology/approachThis paper identifies HFA interventions through a hand-collected sample of Schedule 13D filings between 1994 and 2016, and uses mechanical mutual fund fire sales as the instrument variable (IV) for the likelihood of such interventions. Armed with the instrument, this paper estimates firm's distribution, managerial compensation and investment policies in response to a change in the perceived likelihood of HFA interventions.FindingsAn increase in the HFA intervention likelihood leads to increases in shareholder distribution, decreases in CEO pay and investments and increases in operating performance. Compared to the sample average, a one standard deviation increase in the intervention likelihood leads to a 9.29% increase in the firm's payout ratio, a 7.42% decrease in CEO compensation, a 2.67% decrease in capital expenditures and a 4.96% decrease in R&D expenses. These changes are consistent with the threat of intervention curbing managerial empire-building behaviors and improving firm operation. The relationships are causal, significant and robust to a variety of alternative specifications and sample divisions.Originality/valueResults of this paper suggest that as a mechanism for corporate governance, the threat of HFA is effective in preventing corporate policy deviations. They also demonstrate a stronger and broader impact of HFA on corporate policy than previously documented. By showing that HFA is an effective and viable mechanism for corporate governance, this study allows policymakers to make more informed decisions to whether increase hedge fund regulations or not.

Sign in / Sign up

Export Citation Format

Share Document