Topic Results: Activism

January 19, 2015

Still unanswered questions (and new ones) to Bebchuk, Brav and Jiang

Bebchuk et al. have produced a new version of their paper The Long-Term Effects of Hedge Fund Activism (December 2014) to be published in the June 2015 issue of the Columbia Law Review. In this revised text, the authors struggle valiantly to cope with the challenging questions a number of critics have raised about their […]

January 14, 2015

The Threat to Shareholders and the Economy from Activist Hedge Funds

“ A paper by Dr. Yvan Allaire entitled “The Value of ‘Just Say No,’” and also memos by our firm (here and here, the latter memo discussed on the Forum here), demonstrated that an ISS client note entitled “The IRR of No,” which argued that companies that had “just said no” to hostile takeover bids […]

January 8, 2015

The Shareholder Value Scam

“If you guessed Hedge Funds, take your seat at the head of the class.  And, do the hedge fund and private equity firms deliver on Shareholder Value?  Not quite: “…the most generous conclusion one may reach from these empirical studies has to be that “activist” hedge funds create some short-term wealth for some shareholders as […]

December 19, 2014

Do Activist Interventions Create Long Term Shareholder Value?

December 19, 2014

Yvan Allaire: Shareholder Activism and Long-Term Value

In case you missed it last weekend, Donna Dabney, Executive Director of the Governance Center at The Conference Board posted this November 14th presentation by  Dr. Yvan Allaire presented at the Annual Meeting of The Conference Board Governance Center. His talk was titled Do activist interventions create long term shareholder value? Allaire reviews a lot of studies and […]

August 18, 2014

Hedge Fund Activism and their Long-Term Consequences

In our paper “Activist” hedge funds: creators of lasting wealth? What do the empirical studies really say?” (available here), we asked Lucian Bebchuk, Alon Brav and Wei Jiang questions of the sort that any referee/reviewer for a professional journal would raise about their paper The Long-Term Effects of Hedge Fund Activism. Their paper’s aim is […]

July 22, 2014

Do Activist Hedge Funds Really Create Long Term Value?

“About a year ago, Professor Lucian Bebchuk took to the pages of the Wall Street Journal to declare that he had conducted a study that he claimed proved that activist hedge funds are good for companies and the economy. Not being statisticians or econometricians, we did not respond by trying to conduct a study proving […]

July 17, 2014

“Activist” hedge funds: creators of lasting wealth? What do the empirical studies really say?

Hedge funds have found, in some academic circles, supporters and champions of their enduring contribution to shareholder wealth. Some recent empirical research has triggered an important debate in the American corporate/financial world about the role of board of directors, the rights of shareholders, and the very concept of the business corporation. The terms of the […]

September 16, 2013

On becoming an activist board!

The governance reforms carried out in publicly traded companies since, if not before, the fiascos called Enron, WorldCom, Tyco, Global Crossing, et alia have resulted in boards of directors largely staffed with independent, diligent people with solid business experience. Then, why is it that boards, though dutiful and careful, remain surprise-prone and ill-equipped to challenge […]

July 29, 2013

Lessons from SNC-Lavalin: The mirage of board governance

In a recent commentary in The Globe and Mail, Gwyn Morgan, the former chair of the board of SNC-Lavalin, gives us his take on what happened within the engineering giant and offers some advice to improve corporate governance. The gist of his piece bears on how hard working and diligent the chairman and the board […]

July 29, 2013

The limits of “good” governance:

In an opinion piece in the Globe and Mail of July 26th, 2013, Mr. Gwyn Morgan, the former chair of the board of SNC-Lavalin gives us his take on what happened there and offers some suggestions to improve corporate governance. The gist of his piece bears on how hard-working and diligent were the chairman and […]

June 27, 2013

The Taming of Hostile Takeovers:

On March 13, 2013, the Autorité des marchés financiers and the Canadian Securities Administrators published, for comment, proposed amendments and changes to Multilateral Instrument 62-104 Take-Over Bids and Issuer Bids, National Policy 62-203 Take-Over Bids and Issuer Bids, and National Instrument 62-103 Early Warning System and Related Take-Over Bid and Insider Reporting Issues. On March […]