Introduction
Hedge fund activism has become a prominent feature of the corporate landscape in recent years, as activist investors seek to influence the strategic direction and operational performance of targeted companies. This phenomenon has sparked a heated debate among scholars, practitioners, and policymakers about the impact of hedge fund activism on corporate performance. While some argue that activist interventions can create long-term value for shareholders by improving corporate governance and operational efficiency, others contend that such interventions may have detrimental effects on firms and their stakeholders.
This thesis seeks to contribute to this ongoing debate by investigating the relationship between hedge fund activism and corporate performance. Specifically, it aims to examine the various mechanisms through which activist investors influence the behavior and decisions of target companies, as well as the resulting impact on key performance indicators such as profitability, stock returns, and market value. By shedding light on the complex interplay between activist interventions and firm outcomes, this study seeks to provide valuable insights for investors, managers, regulators, and other stakeholders in the financial markets.
Chapter 1: Introduction
1.1 Introduction
1.2 Background of study
1.3 Problem Statement
1.4 Objective of study
1.5 Limitation of study
1.6 Scope of study
1.7 Significance of study
1.8 Structure of the Thesis
1.9 Definition of Terms
Chapter 2: Literature Review
2.1 Overview of Hedge Fund Activism
2.2 Theoretical Frameworks
2.3 Empirical Evidence on Activist Interventions
2.4 Performance Metrics in Corporate Finance
2.5 Stakeholder Theory and Corporate Governance
2.6 Agency Theory and Shareholder Activism
2.7 Market Reactions to Activist Campaigns
2.8 Legal and Regulatory Environment
2.9 Challenges and Criticisms of Activist Strategies
2.10 Summary of Literature Review
Chapter 3: Research Methodology
3.1 Research Design
3.2 Data Collection and Sample Selection
3.3 Variables and Measurement
3.4 Analytical Techniques
3.5 Model Specification
3.6 Control Variables
3.7 Data Analysis
3.8 Ethical Considerations
Chapter 4: Discussion of Findings
4.1 Descriptive Statistics
4.2 Correlation Analysis
4.3 Regression Results
4.4 Robustness Checks
4.5 Hypothesis Testing
4.6 Interpretation of Results
4.7 Implications for Theory and Practice
4.8 Comparison with Previous Studies
Chapter 5: Conclusion and Summary
5.1 Summary of Findings
5.2 Contributions to Literature
5.3 Practical Implications
5.4 Policy Recommendations
5.5 Limitations and Future Research Directions
5.6 Conclusion
Thesis Overview
The Relationship Between Hedge Fund Activism and Corporate Performance
Hedge fund activism has emerged as a controversial strategy in the financial markets, with activist investors seeking to influence the decision-making processes of target companies in order to unlock shareholder value. This thesis aims to investigate the relationship between hedge fund activism and corporate performance, by analyzing the impact of activist interventions on key performance indicators such as profitability, stock returns, and market value.
Chapter 1 provides an introduction to the research topic, outlining the background, problem statement, objectives, limitations, scope, significance, structure, and definition of terms. Chapter 2 presents a comprehensive literature review on hedge fund activism, theoretical frameworks, empirical evidence, performance metrics, stakeholder theory, agency theory, market reactions, legal and regulatory environment, and challenges of activist strategies.
Chapter 3 details the research methodology, including research design, data collection, sample selection, variables, measurement, analytical techniques, model specification, control variables, data analysis, and ethical considerations. Chapter 4 discusses the findings of the study, with descriptive statistics, correlation analysis, regression results, robustness checks, hypothesis testing, interpretation of results, implications for theory and practice, and comparison with previous studies.
Chapter 5 concludes the thesis by summarizing the findings, highlighting contributions to literature, practical implications, policy recommendations, limitations, and future research directions. This thesis aims to provide valuable insights for investors, managers, regulators, and other stakeholders interested in understanding the complex relationship between hedge fund activism and corporate performance.
