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Law Commons

Open Access. Powered by Scholars. Published by Universities.®

Banking and Finance Law

Cornell University Law School

Cornell Law Review

2019

Articles 1 - 2 of 2

Full-Text Articles in Law

An Empirical Investigation Of Third Party Consumer Litigant Funding, Ronen Avraham, Anthony Sebok Jul 2019

An Empirical Investigation Of Third Party Consumer Litigant Funding, Ronen Avraham, Anthony Sebok

Cornell Law Review

No abstract provided.


Activist Directors And Agency Costs: What Happens When An Activist Director Goes On The Board, John C. Coffee Jr., Robert J. Jackson Jr., Joshua R. Mitts, Robert E. Bishop Jan 2019

Activist Directors And Agency Costs: What Happens When An Activist Director Goes On The Board, John C. Coffee Jr., Robert J. Jackson Jr., Joshua R. Mitts, Robert E. Bishop

Cornell Law Review

We develop and apply a new and more rigorous methodology by which to measure and understand both informed trading and the agency costs of hedge fund activism. We use quantitative data to show a systematic relationship between the appointment of a hedge fund-nominated director to a corporate board and an increase in informed trading in that corporation's stock (with the relationship being most pronounced when the fund's slate of directors includes a hedge fund employee). This finding is important from two different perspectives. First, from a governance perspective, activist hedge funds represent a new and potent force in corporate governance. …