
Contents
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Introduction Introduction
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Differences between Hedge Funds and Other Institutional Investors Differences between Hedge Funds and Other Institutional Investors
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Hedge Funds Activism Targeting Underperforming Firms Hedge Funds Activism Targeting Underperforming Firms
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Two Examples of Hedge Fund Activism Two Examples of Hedge Fund Activism
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Example 1: Hostile Approach Example 1: Hostile Approach
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Example 2: Less Hostile Approach Example 2: Less Hostile Approach
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Characteristics of Hedge Fund Activism Target Firms Characteristics of Hedge Fund Activism Target Firms
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Tactics of Hedge Fund Activism Targeting Underperforming Firms Tactics of Hedge Fund Activism Targeting Underperforming Firms
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The Effect of Hedge Funds Activism Targeting Underperforming Firms The Effect of Hedge Funds Activism Targeting Underperforming Firms
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Differences Between Hedge Fund Activists and Other Activists Differences Between Hedge Fund Activists and Other Activists
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Hedge Funds Activism Targeting Distressed Firms Hedge Funds Activism Targeting Distressed Firms
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An Example An Example
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Characteristics of Hedge Funds Investing in Distressed Firms Characteristics of Hedge Funds Investing in Distressed Firms
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Tactics of Hedge Fund Activism Targeting Distressed Firms Tactics of Hedge Fund Activism Targeting Distressed Firms
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The Effect of Hedge Funds Activism Targeting Distressed Firms The Effect of Hedge Funds Activism Targeting Distressed Firms
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Hedge Funds Activism and New Vote Buying Hedge Funds Activism and New Vote Buying
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Conclusion Conclusion
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Notes Notes
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References References
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25 Hedge Fund Activism and Corporate Governance
Get accessNa Dai is a tenured Associate Professor of Finance at the State University of New York (Albany).
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Published:01 July 2013
Cite
Abstract
Hedge funds are now considered as a related—and distinctive—form of active investor. This chapter shows how hedge funds have become critical players within the financial market, of which they comprised more than $2 trillion in market value during the last few months of 2011. It discusses the evolution of hedge fund activism, its implications for corporate governance, and the nature of hedge fund activism. It differentiates hedge fund activism from the activism of traditional institutional investors, venture capital funds, and private equity funds. The chapter also studies the short- and long-term effects of hedge fund activism on firm performance, corporate governance, and value.
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