Returns to Hedge Fund Activism: An International Study

Marco Becht, Julian Franks, Jeremy Grant and Hannes Wagner

The Review of Financial Studies, 2017, vol. 30, issue 9, 2933-2971

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.Received March 3, 2015; editorial decision December 21, 2016 by Editor Andrew Karolyi.

JEL-codes: G32 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (71)

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