{"title":"分析师建议:对冲基金激进主义与管理能力的证据","authors":"Yan Yan, Xiaohui Yang","doi":"10.1142/s0219091522500047","DOIUrl":null,"url":null,"abstract":"This study investigates analysts’ attitudes toward the cooperation/conflict between hedge fund activists and target firm management by examining the impact of managerial ability on analyst recommendations around hedge fund activism. We find that analysts are more likely to reiterate recommendations and less likely to downgrade recommendations for target firms with high managerial skills following the arrival of hedge fund activists. This may be because analysts recognize advantages associated with target firm management’s superior ability that enables managers to avoid costly fights with hedge fund activists. We also show that stronger managerial ability is associated with the higher analyst forecast accuracy during hedge fund intervention. Our results are robust to a cross-sectional analysis of recommendation changes after activists’ takeover. Collectively, our evidence supports the positive impact of managerial ability on analysts’ opinions within the context of hedge fund activist campaigns and sheds light on the information gathering and processing ability of financial analysts.","PeriodicalId":45653,"journal":{"name":"Review of Pacific Basin Financial Markets and Policies","volume":"1 1","pages":""},"PeriodicalIF":0.3000,"publicationDate":"2022-02-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"Analyst Recommendations: Evidence on Hedge Fund Activism and Managerial Ability\",\"authors\":\"Yan Yan, Xiaohui Yang\",\"doi\":\"10.1142/s0219091522500047\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"This study investigates analysts’ attitudes toward the cooperation/conflict between hedge fund activists and target firm management by examining the impact of managerial ability on analyst recommendations around hedge fund activism. We find that analysts are more likely to reiterate recommendations and less likely to downgrade recommendations for target firms with high managerial skills following the arrival of hedge fund activists. This may be because analysts recognize advantages associated with target firm management’s superior ability that enables managers to avoid costly fights with hedge fund activists. We also show that stronger managerial ability is associated with the higher analyst forecast accuracy during hedge fund intervention. Our results are robust to a cross-sectional analysis of recommendation changes after activists’ takeover. Collectively, our evidence supports the positive impact of managerial ability on analysts’ opinions within the context of hedge fund activist campaigns and sheds light on the information gathering and processing ability of financial analysts.\",\"PeriodicalId\":45653,\"journal\":{\"name\":\"Review of Pacific Basin Financial Markets and Policies\",\"volume\":\"1 1\",\"pages\":\"\"},\"PeriodicalIF\":0.3000,\"publicationDate\":\"2022-02-26\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Review of Pacific Basin Financial Markets and Policies\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://doi.org/10.1142/s0219091522500047\",\"RegionNum\":0,\"RegionCategory\":null,\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q4\",\"JCRName\":\"BUSINESS, FINANCE\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Review of Pacific Basin Financial Markets and Policies","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1142/s0219091522500047","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
Analyst Recommendations: Evidence on Hedge Fund Activism and Managerial Ability
This study investigates analysts’ attitudes toward the cooperation/conflict between hedge fund activists and target firm management by examining the impact of managerial ability on analyst recommendations around hedge fund activism. We find that analysts are more likely to reiterate recommendations and less likely to downgrade recommendations for target firms with high managerial skills following the arrival of hedge fund activists. This may be because analysts recognize advantages associated with target firm management’s superior ability that enables managers to avoid costly fights with hedge fund activists. We also show that stronger managerial ability is associated with the higher analyst forecast accuracy during hedge fund intervention. Our results are robust to a cross-sectional analysis of recommendation changes after activists’ takeover. Collectively, our evidence supports the positive impact of managerial ability on analysts’ opinions within the context of hedge fund activist campaigns and sheds light on the information gathering and processing ability of financial analysts.
期刊介绍:
This journal concentrates on global interdisciplinary research in finance, economics and accounting. The major topics include: 1. Business, economic and financial relations among the Pacific rim countries. 2. Financial markets and industries. 3. Options and futures markets of the United States and other Pacific rim countries. 4. International accounting issues related to U.S. companies investing in Pacific rim countries. 5. The issue of and strategy for developing Tokyo, Taipei, Shanghai, Sydney, Seoul, Hong Kong, Singapore, Kuala Lumpur, Bangkok, Jakarta, and Manila as international or regional financial centers. 6. Global monetary and foreign exchange policy, and 7. Other high quality interdisciplinary research in global accounting, business, economics and finance.