Hedge Fund Activism

Order Description

a) Based on a review of the relevant academic and emprical literature, critically discuss how shareholder activism by hedge funds impacts on the principal-agent and principal-principal problems their target companies are exposed to. (70 marks) b) In light of your discussion under a), choose an event where a hedge funds shareholder activist has targeted a firm and consider the arguments in favour or against the intervention. (Use Steve Madden and Barington Capital Group’s case) (30 marks