Prof. Dr. David Bendig (l.), Dr. Colin Schulz (m.l.), Prof. Dr. Christian Ketterer (m.r.), Prof. Dr. Sebastian Kortmann (r.)

Handelsblatt has featured a recent study by the Institute for Entrepreneurship. The study, published in the Journal of Product Innovation Management, shows how hedge fund activism relates to firms' ability to produce technological and market breakthrough innovations.

In an article titled “What hedge fund entry means for companies,” Handelsblatt journalists Hannah Krolle and Bert Fröndhoff examine the growing influence of activist investors. In assessing potential long-term consequences for firms' innovative capacity, the article draws on research findings by Prof. Dr. David Bendig, Dr. Colin Schulz, Prof. Dr. Christian Ketterer, and Prof. Dr. Sebastian Kortmann.

A central finding: In the three years following a hedge fund campaign, the targeted firms in the sample exhibit a lower degree of technological breakthrough innovation than comparable, non-targeted firms. At the same time, the results indicate that broad career variety in top management and a more tangible resource base may be associated with less pronounced negative patterns.

The Handelsblatt article places these findings in the context of a current development: Activist investors are increasingly engaging with executive and supervisory boards outside public campaigns. Pressure for short-term value creation can narrow the scope for long-term innovation projects. However, the study cautions against blanket conclusions. Hedge fund activism does not relate to all forms of breakthrough innovation in the same way, and internal resources and management profiles can make a difference.

Handelsblatt's coverage of the study underscores the high practical relevance of research at the Institute for Entrepreneurship. The coverage brings scientific findings into the public debate on capital market pressure, corporate governance, and long-term innovative capacity.

Further links:

Handelsblatt article: https://www.handelsblatt.com/finanzen/maerkte/investoren-was-der-einstieg-von-hedgefonds-fuer-unternehmen-bedeutet/100241730.html

Open-access study: https://doi.org/10.1111/jpim.70037

Detailed Institute report on the study and its content: https://www.wiwi.uni-muenster.de/ent/de/news/687

Contact for inquiries:
Dr. Colin Schulz
University of Münster
Institute for Entrepreneurship
Leonardo-Campus 9, 48149 Münster
Email: colin.schulz@uni-muenster.de