Do activist hedge funds target female CEOs? The role of CEO gender in hedge fund activism
Using a comprehensive US hedge fund activism dataset from 2003 to 2018, we find that activist hedge funds are about 52% more likely to target firms with female CEOs compared to firms with male CEOs. We find that firm fundamentals, the existence of a “glass cliff,” gender discrimination bias, and hed...
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| Veröffentlicht in: | Journal of financial economics 2021-07, Vol.141 (1), p.372-393 |
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| container_title | Journal of financial economics |
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| creator | Francis, Bill B. Hasan, Iftekhar Shen, Yinjie (Victor) Wu, Qiang |
| description | Using a comprehensive US hedge fund activism dataset from 2003 to 2018, we find that activist hedge funds are about 52% more likely to target firms with female CEOs compared to firms with male CEOs. We find that firm fundamentals, the existence of a “glass cliff,” gender discrimination bias, and hedge fund activists’ inherent characteristics do not explain the observed gender effect. We also find that the transformational leadership style of female CEOs is a plausible explanation for this gender effect: instead of being self-defensive, female CEOs are more likely to communicate and cooperate with hedge fund activists to achieve intervention goals. Finally, we find that female-led targets experience greater increases in market and operational performance subsequent to hedge fund targeting. |
| doi_str_mv | 10.1016/j.jfineco.2020.07.019 |
| format | Article |
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| ispartof | Journal of financial economics, 2021-07, Vol.141 (1), p.372-393 |
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| language | eng |
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| source | Elsevier ScienceDirect Journals |
| subjects | Activism Activists Bias Chief executive officers Chief executives Collaborative communication Cooperation Female CEOs Females Gender Gender differences Gender equity Hedge fund activism Hedge funds Leadership Leadership style Political activists Reformers Seminars Sex discrimination Social reformers Transformational leadership Transformational leadership style Women Women executives |
| title | Do activist hedge funds target female CEOs? The role of CEO gender in hedge fund activism |
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