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Dual Holders, Institutional Investor Activism, Innovation, Product Market Competition, Foreign Cash Innovation Strategy
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Innovation, Ownership And Ipo Underpricing, Roman Bohdan
Innovation, Ownership And Ipo Underpricing, Roman Bohdan
University of New Orleans Theses and Dissertations
This dissertation consists of two empirical essays. The first chapter titled: “Hedge Fund Activism and Dual Ownership of U.S. Multinationals”. Harford, Wang & Zhang (2017) conclude that holding high cash balances abroad to avoid US taxes causes internal capital markets and investments distortions. We posit that hedge funds target MNCs with more severe internal capital and agency problems. We demonstrate that upon acquiring dual ownership in these firms, hedge funds reduce internal capital problems and improve investment, especially innovation, efficiencies. To further reduce agency costs of foreign cash holdings, hedge funds engage dual firms in focused acquisitions. These improvements are …