“…Studies describing what has happened to companies after the arrival of an activist fund have found a mixture of effects: increased divestiture, decreased acquisition activity, higher probability for the targeted firm being sold out, lower cash balances, higher payout ratios, greater leverage, higher CEO turnover and lower CEO compensation, reduced investment, 'improved' return on assets (ROA) and improved ratio of enterprise 'market' value to its book value (Tobin's Q). But these effects are not linked to specific hedge fund strategies and, though often seen as positive by researchers, it remains unclear whether companies and their shareholders have really benefited from, or been harmed by, these effects (Briggs, 2007;Gillan and Starks, 2007;Bebchuk et al, 2013Bebchuk et al, , 2015Goodwin, 2014;Gow et al, 2014). 6.…”