A large amount of activity in the financial sector occurs in secondary financial markets,
where securities are traded among investors without capital flowing to firms. The stock …

This monograph reviews shareholder activism by hedge funds. We first describe the nature
and characteristics of hedge fund activism, including the objectives, tactics, and choices of …

Financial markets have a central role in allocating resources in modern economies. One of
the main functions of financial markets is the discovery of information. This information in …

We review recent literature on the role of financial reporting transparency in reducing
governance-related agency conflicts among managers, directors, and shareholders, as well …

Using a large hand‐collected data set from 2001 to 2006, we find that activist hedge funds in
the United States propose strategic, operational, and financial remedies and attain success …

The finance industry has grown, financial markets have become more liquid, information
technology has been revolutionized. But have financial market prices become more …

Traditional theories argue that governance is strongest under a single large blockholder, as
she has high incentives to undertake value-enhancing interventions. However, most firms …

Stress tests have become an important component of the supervisory toolkit. However, the
extent of disclosure of stress-test results remains controversial. We argue that while stress …

Using mutual fund redemptions as an instrument for price changes, we identify a strong
effect of market prices on takeover activity (the “trigger effect”). An interquartile decrease in …

This paper revisits the relationship between firm performance and CEO turnover. Instead of
classifying turnovers into forced and voluntary, we introduce performance-induced turnover …