Connecting the dots: a systematic literature review on hedge fund activism

Abstract

Purpose This paper aims to systematically review, discuss and synthesize the current state of research in the realm of hedge fund activism (HFA). By exploring HFA-related literature through a transparent and rigorous method, this study identifies unexplored areas for future research to develop a comprehensive understanding of the subject. Design/methodology/approach The authors perform a systematic database survey procedure as recommended in the prior literature. The review includes 74 articles published in high-impact journals from 2008 to January 2024, sourced from the Web of Science and Scopus databases and filtered using several exclusion/inclusion criteria. Findings This review offers a detailed analysis of the selected papers, highlighting trends in HFA research, the most influential journals and authors and additional insights into current studies. By systematically presenting the state-of-the-art, this paper categorizes the current research into three main streams and provides a critical evaluation of existing knowledge, identifying gaps and potential directions for future research. Originality/value This study makes two significant contributions to the literature. First, this study systematically reviews HFA-related research and provides a comprehensive examination of our existing scientific understanding of the factors shaping activism and its implications. Especially, this paper adopts a rigorous methodological protocol to ensure transparency and replicability in the review process, while earlier reviews focus on specific areas and are primarily narrative. Second, this study identifies research gaps and questions across all three streams of literature, offering valuable insights for future scholars aiming to expand our knowledge of the dynamic and evolving nature of HFA.