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Determinants of hedge fund activism: development of a model of ex-ante decision-making for corporate stake
[Les déterminants de l'activisme des hedge funds : élaboration d'un modèle de décision ex-ante de prise de participation]

Author

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  • Quôc Thai Huynh

    (CEREGE [Poitiers, La Rochelle] - Centre de recherche en gestion [EA 1722] - IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - UP - Université de Poitiers = University of Poitiers - UP - Université de Poitiers = University of Poitiers - ULR - La Rochelle Université)

Abstract

Hedge fund activists are the new promoters of corporate governance through their sustained involvement in the capital of the targeted firms. They use their voting rights and have no fear to sit on the boards of directors to achieve their goals. The high idiosyncratic risk they bear, raises the question of the determinants of this ex-ante strategy of concentration. In this paper, we propose a model of ex-ante decision-making representing the different variables characterizing the choice of the target for the hedge funds.

Suggested Citation

  • Quôc Thai Huynh, 2019. "Determinants of hedge fund activism: development of a model of ex-ante decision-making for corporate stake [Les déterminants de l'activisme des hedge funds : élaboration d'un modèle de décision ex-," Working Papers hal-02145379, HAL.
    • Handle: RePEc:hal:wpaper:hal-02145379
    Note: View the original document on HAL open archive server: https://hal.science/hal-02145379
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    References listed on IDEAS

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