Lecture

Share-holder Activism

Description

This lecture explores the rise of share-holder activism in corporate governance, focusing on prominent activists like Icahn, Ackman, and Peltz. It delves into the significant increase in assets managed by activist hedge funds, the strategies they employ, and recent examples of activism campaigns. The lecture also discusses the impact of activism on market performance and liquidity, highlighting the short and long-term effects on stock turnover and returns. International evidence is presented to confirm the success of activism in various regions. Additionally, the lecture covers the use of derivatives by activists, the implications of activism on market efficiency, and the challenges faced by arbitrageurs in correcting mispricings caused by irrational traders.

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