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A recipe for technological innovation: Does hedge fund activism matter? A fuzzy set qualitative comparative analysis
Author(s) -
Vacher Stéphano,
Ben Arfa Nouha,
Ammari Aymen
Publication year - 2020
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/jsc.2363
Subject(s) - qualitative comparative analysis , hedge fund , causation , set (abstract data type) , hedge , perspective (graphical) , business , industrial organization , economics , political science , computer science , finance , artificial intelligence , ecology , machine learning , law , biology , programming language
Hedge fund activism and firm characteristics can be combined to explain targets' engagements in innovative activities. The “difference in difference” regression framework is first performed and shows that target firms experience an improvement in innovation efficiency due to the presence of hedge funds (HFs) activists. The fuzzy set Qualitative Comparative Analysis (fsQCA) perspective, is used, on the HF activism‐technological innovation relationship, which recognizes the existence of conjunctural causation. The main sets from fsQCA leading to high/presence innovation input/output display the presence of activist HFs combined to target mature firms, low leveraged ones, firms performing structural changes, and/or those that better refocus on their core innovation expertise and technologies in these areas.