CEF.UP - FIN Webinar

Wednesday - June 2nd, 2021 at 1:00 p.m.

“Glass Half Full or Half Empty?  Activists, Short Sellers, and Disagreement”
Pedro Saffi
Cambridge Judge Business School (joint work with Tao Li and Daheng Yang)

Abstract:
We study events in which activist hedge funds and short sellers target the same stock, using European data on activism and mandatory disclosures of large short positions. The likelihood of activist targeting and the probability of a successful campaign are higher in the presence of large short sellers, with an even larger effect when investor disagreement is high. Hedge fund activism is associated with a reduction in short interest, but it does not affect the likelihood of a large short position. Finally, we show that hedge fund activism generates higher abnormal returns when large short sellers are present, especially when activists achieve their stated goals.

To attend please submit the survey no later than Tuesday 1^st at 4:00 p.m. The link to the webinar will be provided by email on the day before.

We are looking forward to seeing you there.
Kind regards,
Miguel Sousa

“Cef.up is financed by Portuguese public funds through FCT - Fundação para a Ciência e Tecnologia, I.P., in the framework of the project with reference UIDB/04105/2020”