Economics, Econometrics and Finance
5 years ago

Hedge-fund activists seize power, reshaping corporate democracy and resource allocation.

SSRN Electronic Journal
The Subversion of Shareholder Democracy and the Rise of Hedge-Fund Activism
Jang-Sup Shin

Paper Summary

Related papers

Theme background image
Social Sciences
8 years ago

Subversion in King Lear sparks rebellion against authority, challenging societal norms.

Philippine Nationalism
Translation Studies
Theme background image
Computer Science
8 years ago

Eternal self-subversion of aesthetic culture shapes evolution of life state.

Technology Development
Theme background image
Social Sciences
3 years ago

Digital subversion: the new weapon in modern resistance movements.

Cyber Security
Hybrid Warfare
Digital Sovereignty

Hedge-fund activists have gained excessive power over companies due to regulatory changes in the 1980s and 1990s. These changes allowed them to control more votes than their actual ownership. The paper suggests policy changes to rebalance value creation and extraction, such as requiring shareholders to justify proposals, removing voting duties from institutional investors, and favoring long-term shareholders with voting rights.