The returns to hedge fund activism: an international study

This paper provides evidence on the incidence, characteristics and performance of activist engagements internationally. We find that the incidence of activism is greatest with high institutional ownership, particularly when the institutions are from the United States. Using a sample of 1,740 activist engagements across 23 countries we find that almost a quarter are multi-activists engaging the same target. These engagements perform strikingly better than single activist engagements. Engagement outcomes, such as board changes and takeovers, vary across countries, and significantly contribute to the returns to activism. Japan is an exception, with high initial expectations, and low outcomes.