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The Impact Of Hedge Fund Activism: Evidence And Implications, John C. Coffee, Jr., Darius Palia
The Impact Of Hedge Fund Activism: Evidence And Implications, John C. Coffee, Jr., Darius Palia
John C Coffee, Jr.
Hedge Fund activism has increased almost hyperbolically. Some view this optimistically as a means for bridging the separation of ownership and control; others are more pessimistic, seeing mainly wealth transfers from bondholders or speculative expectations of a takeover as fueling the spike. Equivalent division exists over the impact of this increased activism, with optimists seeing real gains that do not erode over time and improvements in operating performance, and pessimists finding shortened investment horizons, increased leverage, and reduced investment in research and development.
Our perspective is analytic. We begin by surveying the regulatory and institutional developments that have reduced the …