A hedge fund's capital structure is fragile because uninformed fund investors are highly loss sensitive and easily withdraw capital in response to bad news. Hedge fund managers, sharing common investors and interacting with each other through market price, sensitively react to other funds'...

Environmental, social, and governance (ESG) activities have recently become a widely discussed topic, but clear strategies on whether firms should focus on concentrating or reducing their ESG activities have not been developed. This study develops a strategic approach to ESG investments, which...