How should society allow public shareholders to influence and control the decisions of corporate directors and managers? This course will explore shareholder activism by hedge funds, using an interdisciplinary approach that combines law, economics and policy. We will discuss shareholder activism in the pre-hedge fund period, the emergence of activism by hedge funds, and the question of what different things hedge fund activists want target companies to do. We will also discuss empirical evidence on hedge fund activism, including stock market evidence on the success of activism, and the performance of companies that have been the target of activist campaigns. Throughout the class we will explore the many controversies in hedge fund activism, including whether hedge fund activism sacrifices long run success for the short run benefit of activists, and whether hedge fund activism should be subject to additional laws and regulation.
This is a credit/no credit course based on class participation, short (2-3 page) write-ups, and a final small group presentation on an activist campaign of the small group’s choice.
|Course Areas of Practice|
Knowledge and understanding of substantive and procedural law