Hedge Funds Vs Private Equity Funds As Shareholder Activists Differences In Value Creation PDF Download
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| Author | : Mark Mietzner |
| Publisher | : |
| Total Pages | : 49 |
| Release | : 2007 |
| Genre | : |
| ISBN | : |
Download Hedge Funds vs. Private Equity Funds as Shareholder Activists - Differences in Value Creation Book in PDF, ePub and Kindle
This paper analyzes market reactions triggered by announcements that hedge funds and private equity investors purchase large blocks of voting rights. We argue that changes in share-holder's wealth are related to the opportunity, possibility and motivation of being an active blockholder, who successfully reduce agency problems. The investigation is based on a unique data set of German public listed companies and relates their short-term and long-term stock performance to several corporate and market variables. We find positive abnormal returns triggered by an announcement that an active shareholder acquired at least 5% of a company's voting rights. Interestingly, variables proxying for agency costs explain the market reaction for our private equity sample, only. Ownership characteristics provide only poor evidence for explaining the market reaction within our hedge fund sample; although they are important for the private equity sample. Considering the long-term market performance, we observe considerably negative benchmark adjusted buy-and-hold returns for both samples. However, our results indicate a misinterpretation by the capital market regarding a hedge fund's motivations and activities.
| Author | : Mark Mietzner |
| Publisher | : |
| Total Pages | : 47 |
| Release | : 2008 |
| Genre | : |
| ISBN | : |
Download Hedge Funds versus Private Equity Funds as Shareholder Activists - Differences in Value Creation Book in PDF, ePub and Kindle
This paper analyzes market reactions triggered by announcements that hedge funds and private equity investors have purchased large blocks of voting rights. We argue that changes in shareholder wealth are related to the opportunity, possibility, and motivation of being an active blockholder who successfully reduces agency problems. We find positive abnormal returns following an announcement that an active shareholder has acquired at least 5% of a company's voting rights. Proxy variables for agency costs explain the market reaction only for investments of private equity funds. Considering the long-term stock price performance, we observe negative buy-and-hold abnormal returns especially for the hedge fund samples. We argue that this is because of the German corporate governance system, whereby hedge funds must align their interests with advisory board members. Therefore, we believe the distinct negative post-announcement stock performance of hedge fund targets may be a misinterpretation by the capital market of a hedge fund's abilities and motivations. It seems market participants do not believe hedge fund activism creates wealth effects in a manner comparable to private equity engagements.
| Author | : Denis Schweizer |
| Publisher | : |
| Total Pages | : 39 |
| Release | : 2013 |
| Genre | : |
| ISBN | : |
Download Hedge Funds Versus Private Equity Funds as Shareholder Activists in Germany - Differences in Value Creation Book in PDF, ePub and Kindle
We investigate the valuation effects of German firms targeted by hedge funds and by private equity investors. We argue that both types of investors differ from other blockholders by their strong motivation and ability to actively engage and reduce agency costs. Consequently, we find positive abnormal returns following a change in ownership structure. However, these effects differ markedly between both investors, as proxy variables for agency costs only explain the market reaction for our private equity subsample. We conclude that private equity funds seem to be more successful at creating shareholder value, which could be due to their longer-term perspective and a higher adaptability to the surrounding corporate governance.
| Author | : Alon Brav |
| Publisher | : Now Publishers Inc |
| Total Pages | : 76 |
| Release | : 2010 |
| Genre | : Business & Economics |
| ISBN | : 1601983387 |
Download Hedge Fund Activism Book in PDF, ePub and Kindle
Hedge Fund Activism begins with a brief outline of the research literature and describes datasets on hedge fund activism.
| Author | : William Bratton |
| Publisher | : OUP Oxford |
| Total Pages | : 924 |
| Release | : 2015-08-20 |
| Genre | : Law |
| ISBN | : 0191039799 |
Download Institutional Investor Activism Book in PDF, ePub and Kindle
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.
| Author | : Ivan Kühne |
| Publisher | : Haupt Verlag AG |
| Total Pages | : 350 |
| Release | : 2011 |
| Genre | : Hedge funds |
| ISBN | : 3258076944 |
Download Activist Vs. Passivist Hedge Funds Book in PDF, ePub and Kindle
| Author | : Christopher P. Clifford |
| Publisher | : |
| Total Pages | : 42 |
| Release | : 2012 |
| Genre | : |
| ISBN | : |
Download Value Creation or Destruction? Hedge Funds as Shareholder Activists Book in PDF, ePub and Kindle
I examine the effects of shareholder activism by hedge funds from 1998-2005. When hedge funds accumulate more than 5% of a firm, they must file a regulatory disclosure with the SEC that indicates whether their investment intentions are active or passive. Firms which are targeted by hedge funds for active purposes earn larger excess stock returns and improvements in operating performance (ROA) than a control group of firms that are targeted by the same hedge funds for passive purposes. These operational improvements appear to be driven by the divestiture of underperforming assets. I examine the organizational structure of the hedge funds and find that funds engaging in activism are more likely to have longer lock-ups and withdrawal notification periods than their non-activist peers; indicating that liquidity concerns may be an important determinant in the efficacy of activism. Finally, I document that the returns to the hedge fund are larger for their active blocks than their passive blocks, indicating that activist shareholders may use higher returns to mitigate the cost of their monitoring effort.
| Author | : John Buchanan |
| Publisher | : Cambridge University Press |
| Total Pages | : 389 |
| Release | : 2012-05-24 |
| Genre | : Business & Economics |
| ISBN | : 1107379318 |
Download Hedge Fund Activism in Japan Book in PDF, ePub and Kindle
Hedge fund activism is an expression of shareholder primacy, an idea that has come to dominate discussion of corporate governance theory and practice worldwide over the past two decades. This book provides a thorough examination of public and often confrontational hedge fund activism in Japan in the period between 2001 and the full onset of the global financial crisis in 2008. In Japan this shareholder-centric conception of the company espoused by activist hedge funds clashed with the alternative Japanese conception of the company as an enduring organisation or a 'community'. By analysing this clash, the book derives a fresh view of the practices underpinning corporate governance in Japan and offers suggestions regarding the validity of the shareholder primacy ideas currently at the heart of US and UK beliefs about the purpose of the firm.
| Author | : Maria Goranova |
| Publisher | : Springer |
| Total Pages | : 519 |
| Release | : 2015-12-27 |
| Genre | : Business & Economics |
| ISBN | : 1137373938 |
Download Shareholder Empowerment Book in PDF, ePub and Kindle
In this volume, leading management experts offer critical insights into the promises and illusions of shareholder empowerment, the discrepancies between theory and practice, and the challenges posed by variations in global corporate governance regimes.
| Author | : Jan Pieter Krahmen (editor) |
| Publisher | : |
| Total Pages | : 550 |
| Release | : 2004 |
| Genre | : Business & Economics |
| ISBN | : 0199253161 |
Download The German Financial System Book in PDF, ePub and Kindle
Written by a team of scholars, predominantly from the Centre for Financial Studies in Frankfurt, this volume provides a descriptive survey of the present state of the German financial system and a new analytical framework to explain its workings.
