Full-text resources of CEJSH and other databases are now available in the new Library of Science.
Visit https://bibliotekanauki.pl

Refine search results

Journals help

  1. 1 Economics and Business Review

Authors help

  1. 1 Carrothers A.

Years help

  1. 1 2017

Results found: 1

first rewind previous Page / 1 next fast forward last

Search results

help Sort By:

help Limit search:
first rewind previous Page / 1 next fast forward last
1
Publication available in full text mode
Content available

Friends or Foes? Activist Hedge Funds and Other Institutional Investors

100%
Carrothers A.
Economics and Business Review
|
2017
|
vol. 3(17)
|
issue 1
EN
The aim of this paper is to contribute to the understanding of the relationship between activist hedge funds and other institutional investors. Hedge funds are more likely to target firms with high levels of institutional ownership and demonstrate a preference for short-term focused institutional investors. Hedge fund activism generates short run and long run abnormal returns without increasing stock return volatility. Regardless of the investment horizon, volatility is inversely related to prior period institutional ownership. The trading behavior of institutional owners with different investment horizons is consistent with hedge fund activism creating value. These findings hold regardless of whether investment horizon is based on portfolio churn rate or type of institution. Overall the results suggest a mutually beneficial relationship between activist hedge funds and other institutional investors.
first rewind previous Page / 1 next fast forward last
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.