Found 6 article(s) for author 'Hedge Funds'

The Misdirected War on Corporate Short-Termism

The Misdirected War on Corporate Short-Termism. Robert Pozen, May 22, 2014 , Opinion. “A clamor is rising against “short termism” — judging a company by its performance over the past quarter, rather than the past few years. BlackRock CEO Laurence Fink and Delaware Supreme Court Chief Justice Leo Strine, for example, recently joined the Business Roundtable and others in decrying the strong pressures for short-term results exerted by daily stock traders and activist hedge funds. Critics claim that these pressures prevent executives from making long-term investments needed for sustainable corporate growth…” Link

Tags: , , ,

Corporate Short-Termism – In the Boardroom and in the Courtroom

Corporate Short-Termism – In the Boardroom and in the Courtroom. Mark Roe, March 14, 2014, Paper. “A long-held view in corporate circles has been that furious rapid trading in stock markets has been increasing in recent decades, justifying corporate governance and corporate law measures that would further shield managers and boards from shareholder influence, to further free boards and managers to pursue their view of sensible long-term strategies in their investment and management policies. Here, I evaluate the evidence in favor of that view…” Link verified June 19, 2014

Tags: , , , , , , , , , , , , , , , , , , , ,

The Myth that Insulating Boards Serves Long-Term Value

The Myth that Insulating Boards Serves Long-Term Value. Lucian Bebchuk, September 2013, Paper. “According to an influential view in corporate law writings and debates, pressure from shareholders leads companies to take myopic actions that are costly in the long term, and insulating boards from such pressure serves the long-term interests of companies as well as their shareholders. This board insulation claim has been regularly invoked in a wide range of contexts to support existing or tighter limits on shareholder rights and involvement. This paper subjects this view to a comprehensive examination and finds it wanting…” Link verified June 19, 2014

Tags: , , , , , , , , , , , , , , , , , ,

The Long-Term Effects of Hedge Fund Activism

The Long-Term Effects of Hedge Fund Activism. Lucian Bebchuk, July 9, 2013, Paper. “We test the empirical validity of a claim that has been playing a central role in debates on corporate governance – the claim that interventions by activist shareholders, and in particular activist hedge funds, have an adverse effect on the long-term interests of companies and their shareholders. While this “myopic activists” claim has been regularly invoked and has had considerable influence, its supporters have thus far failed to back it up with evidence…” Link verified June 19, 2014

Tags: , , , , , , , , , , , , , , ,

A Capital Market, Corporate Law Approach to Creditor Conduct

A Capital Market, Corporate Law Approach to Creditor Conduct. Mark Roe, May 1, 2013, Paper. “The problem of creditor conduct in distressed firms — for which policymakers ought to have the economically-sensible repositioning of the distressed firm as a central goal — has vexed courts for decades. Because courts have not come to coherent, stable doctrine to regulate creditor behavior and because they do not focus on using doctrine to facilitate the sensible repositioning of the distressed firm, social costs arise and those costs may be substantial…” Link verified June 19, 2014

Tags: , , , , , , ,

Pre-Disclosure Accumulations by Activist Investors: Evidence and Policy

Pre-Disclosure Accumulations by Activist Investors: Evidence and Policy. Lucian Bebchuk, April 2013, Paper. “The SEC is currently considering a rulemaking petition requesting that the Commission shorten the ten-day window, established by Section 13(d) of the Williams Act, within which investors must publicly disclose purchases of a 5% or greater stake in public companies. In this Article, we provide the first systematic empirical evidence on these disclosures and find that several of the petition’s factual premises are not consistent with the evidence.Our analysis is based on about 2,000 filings by activist hedge funds…” Link verified June 19, 2014

Tags: , , , , , , , , , , , , , ,