Abstract
The growing visibility and aggressive tactics by some activist hedge funds raises the question of what determines whether these activist campaigns are successful. We propose that the reputation of the activist hedge fund is likely to play a role in explaining their success. Specifically, we investigate and find that activist hedge funds that signal a reputation for being confrontational based on prior proxy fights are more likely to be successful in achieving their intentions in an activist campaign. In addition, we find that the effect of reputation on activist hedge fund success is greater when the activist hedge is the sole activist in the campaign and when they target firms with high performance. Our study contributes to our understanding of activist hedge funds by examining how reputation may impact their success or failure.
Original language | English |
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Title of host publication | Academy of Management Proceedings 2018 |
Editors | Sonia Taneja |
Publisher | Academy of Management |
DOIs | |
Publication status | Published - 1 Aug 2018 |
Event | 78th Annual Meeting of the Academy of Management, AOM 2018: Improving Lives - Chicago, United States Duration: 10 Aug 2018 → 14 Aug 2018 https://aom.org/events/annual-meeting/past-annual-meetings/2018-improving-lives (Conference website) https://journals.aom.org/toc/amproc/2018/1 (Conference proceedings) |
Publication series
Name | Academy of Management Proceedings |
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Number | 1 |
Volume | 2018 |
ISSN (Print) | 0065-0668 |
ISSN (Electronic) | 2151-6561 |
Conference
Conference | 78th Annual Meeting of the Academy of Management, AOM 2018 |
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Country/Territory | United States |
City | Chicago |
Period | 10/08/18 → 14/08/18 |
Internet address |
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