“…Seminal work by Brav, Jiang, Partnoy, and Thomas (2008) shows that 13D-announcement returns for activist hedge funds average 7%. Since then, others have shown announcement returns to be a function of factors such as the target's inherent characteristics, the activist's reputation, the composition of the 13D, and early engagement between the target and the activist (Greenwood and Schor (2009), Klein and Zur (2009), Krishnan, Partnoy, and Thomas (2016), Aiken andLee (2020), andSchoenfeld (2020)). More recent research examines the trading activity of corporate insiders ahead of a 13D; these insiders acquire more shares when they detect share acquisition by activists, which gives the insiders more voting power to combat the activist (Chabakauri, Fos, and Jiang (2022)).…”