Publisher:
Federal Reserve Bank of New York, New York, NY
Two activists with correlated private positions in a firm's stock, trade sequentially before simultaneously exerting effort that determines the firm's value. We document the existence of a novel linear equilibrium in which an activist's trades have...
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ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
Signature:
DS 207
Inter-library loan:
No inter-library loan
Two activists with correlated private positions in a firm's stock, trade sequentially before simultaneously exerting effort that determines the firm's value. We document the existence of a novel linear equilibrium in which an activist's trades have positive sensitivity to her block size, but such orders are not zero on average: the leader activist manipulates the price to induce the follower to acquire a larger position and thus add more value. We examine the implications of this equilibrium for market outcomes and discuss its connection with the prominent phenomenon of "wolf-pack" activism-multiple hedge funds engaging in parallel with a target firm. We also explore the possibility of other equilibria where the activists trade against their initial positions.
Publisher:
German Institute for Global and Area Studies (GIGA), Hamburg, Germany
In this paper we challenge the conventional wisdom that COVID-19 and related legal restrictions invariably reinforce a global trend of shrinking civic space. We argue that the legal guarantee of civil liberties is not the sole factor configuring...
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ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
Signature:
DS 127
Inter-library loan:
No inter-library loan
In this paper we challenge the conventional wisdom that COVID-19 and related legal restrictions invariably reinforce a global trend of shrinking civic space. We argue that the legal guarantee of civil liberties is not the sole factor configuring civic space. Instead, civic space is best understood as being configured by three interacting components: 1) the legal guarantee (or restriction) of civil liberties, that is, rights-based space; 2) socio-economic needs that configure needs-induced space; and, 3) civil society activism. During the pandemic needs-induced space for civil society has emerged both from the health crisis and because restrictive government responses have had severe socio-economic side effects on people's livelihoods. These socio-economic conditions, along with civic discontent over restrictions on civil liberties, have driven civil society engagement in the form of both relief and advocacy/protest activism. Along with the structural condition of needs-induced space, this civil society activism has worked to sustain civic space.
