Institutional Investor Activism: Hedge Funds and Private Equity, Economics and Regulation

The past two decades has witnessed unprecedented changes in the corporate governance landscape in Europe, the US and Asia. Across many countries, activist investors have pursued engagements with management of target companies. More recently, the role of the hostile activist shareholder has been taken up by a set of hedge funds. Hedge fund activism is characterized by mergers and corporate restructuring, replacement of management and board members, proxy voting, and lobbying of management. These investors target and research companies, take large positions in `their stock, criticize their business plans and governance practices, and confront their managers, demanding action enhancing shareholder value. This book analyses the impact of activists on the companies that they invest, the effects on shareholders and on activists funds themselves. Chapters examine such topic as investors' strategic approaches, the financial returns they produce, and the regulatory frameworks within which they operate. The chapters also provide historical context, both of activist investment and institutional shareholder passivity. The volume facilitates a comparison between the US and the EU, juxtaposing not only regulatory patterns but investment styles. Contributors to this volume - John Armour, University of Oxford Dan Awrey, University of Oxford Douglas Baird, University of Chicago Lucian A. Bebchuk, Harvard Law School Marco Becht, University of Brussels Bernard S. Black, Northwestern University School William W. Bratton, University of Pennsylvania Law School Alon Brav, Duke University Brian Cheffins, University of Cambridge Douglas Cumming, York University Peter Cziraki, University of Toronto Na Dai, SUNY Albany Jill E. Fisch, University of Pennsylvania Julian Franks, London Business School Stuart Gillan, University of Georgia Henry T.C. Hu, University of Texas Robert J. Jackson,Jr., Columbia University Wei Jiang, Columbia University Sofia A. Johan, York University Marcel Kahan, New York University Law School Steven N. Kaplan, University of Chicago April Klein, New York University Kai Li, University of British Columbia Colin Mayer, University of Oxford Joseph A. McCahery, Tilburg University Law School Frank Partnoy, San Diego University Ludovic Phalippou, University of Oxford Robert K. Rasmussen, University of Southern California Luc Renneboog, Tilburg University Edward Rock, University of Pennsylvania Law School Stefano Rossi, Purdue University Per Stromberg, Stockholm School of Economics Peter G. Szilagyi, University of Cambridge Laura T. Starks, University of Texas Randall Thomas, Vanderbilt University Erik P.M. Vermeulen, Tilburg University Wei Wang, Queen's School of Business Michael L. Wachter, University of Pennsylvania Emanuel Zur, University of Maryland