We examine whether hedge fund activists correct inefficient R&D investment and create long-term value at their targets. Using an endogenous growth model to estimate the efficient level of R&D investment, we find firms targeted by activists are overinvesting in R&D on average, with both the...

This paper investigates spillovers in cash flow to SRI funds within the fund family due to the existence of a star (poor) performing peer SRI fund. Using a sample of SRI funds domiciled in the U.S. and considering survivorship, we find a positive spillover effect from having a star SRI fund on...

We investigate the roles of firm and country level agency conflicts in determining corporate payout policies. Based on a large sample of 29,610 firms in 43 countries from 2001 to 2006, we find that in high protection countries, investors are able to use their legal powers to extract cash from...