Weekly Roundup: August 26–September 1, 2016

This roundup contains a collection of the posts published on the Forum during the week of August 26–September 1, 2016.

Capitalizing on Capitol Hill: Informed Trading by Hedge Fund Managers

Posted by Jiekun Huang, University of Illinois Urbana-Champaign, on Friday, August 26, 2016

Tags: Campaign finance, Firm performance, Fund managers, Hedge funds, Information asymmetries, Information environment, Inside information, Insider trading, Lobbying, Political spending, Securities regulation, STOCK Act, Stock returns

The 2016 Proxy Season: Proxy Access Proposals

Posted by Yafit Cohn, Simpson Thacher & Bartlett LLP, on Friday, August 26, 2016

Tags: Boards of Directors, Glass Lewis, Institutional Investors, ISS, No-action letters, Precatory proposals, Proxy access, Proxy advisors,Proxy season, Rule 14a-8, SEC, Securities regulation, Shareholder nominations, Shareholder proposals, Shareholder voting

Recovery and Resolution: Uneven Bars for CCPs and Banks

Posted by Dan Ryan, PricewaterhouseCoopers LLP, on Saturday, August 27, 2016

Tags: Bankruptcy, Banks, CFTC, Clearing houses, Failed banks, Financial institutions, Financial regulation, Liquidity, Recovery & resolution plans, Risk assessment, Risk management, Systemic risk, Transparency

Do CEOs Affect Employee Political Choices?

Posted by Ilona Babenko, Arizona State University, on Sunday, August 28, 2016

Tags: Campaign finance, Congressional elections, Employees, Management, Managerial style, Political spending, Presidential elections,Social capital, Social networks

Blockholders: a Survey of Theory and Evidence

Posted by Alex Edmans, London Business School and Clifford G. Holderness, Boston College, on Monday, August 29, 2016

Tags: Blockholders, Capital markets, Engagement, Firm performance, Institutional Investors, Management, Ownership, Property rights,Public firms, Shareholder activism, Shareholder voting

We Have a Consensus on Fraud on the Market—And It’s Wrong

Posted by James C. Spindler, University of Texas Law School and McCombs School of Business, on Monday, August 29, 2016

Tags: Diversification, Fraud-on-the-Market, Halliburton, Information asymmetries, Information environment, Market efficiency, Rule 10b-5,Securities fraud, Securities litigation, Securities regulation

Advance Notice Bylaws in Light of Corvex/Williams: Displacing the Placeholder Nomination

Posted by Daniel E. Wolf and Sarkis Jebejian, Kirkland & Ellis LLP, on Monday, August 29, 2016

Tags: Acquisitions, Advanced notice, Boards of Directors, Charter & bylaws, Director qualifications, Hedge funds, Mergers & acquisitions,Proxy contests, Shareholder activism, Shareholder meetings, Shareholder nominations, Shareholder voting

Buyout Activity: The Impact of Aggregate Discount Rates

Posted by Matthew Plosser, Federal Reserve Bank of New York, on Tuesday, August 30, 2016

Tags: Acquisitions, Buyouts, Capital markets, Cost of capital, Debt, Going private, Incentives, IPOs, Leveraged acquisitions, Mergers & acquisitions, Private equity, Risk assessment, Risk-taking, Target firms

Corporate Litigation: Advancement of Legal Expenses

Posted by Joseph M. McLaughlin and Yafit Cohn, Simpson Thacher & Bartlett LLP, on Tuesday, August 30, 2016

Tags: Attorneys’ fees, Boards of Directors, Charter & bylaws, Contracts, Delaware cases, Delaware law, DGCL, Director liability, Exchange Act, Indemnification

Glass Lewis Thoughts on the “Commonsense Principles of Corporate Governance”

Posted by Greg Waters, Glass, Lewis & Co., on Tuesday, August 30, 2016

Tags: Antitakeover, Board independence, Commonsense Principles, Dual-class stock, Engagement, Fund managers, Glass Lewis,Institutional Investors, Long-Term value, Ownership, Proxy access, Proxy advisors, Shareholder voting

Measuring Institutional Investors’ Skill from Their Investments in Private Equity

Posted by Michael Weisbach, Ohio State University, on Wednesday, August 31, 2016

Tags: Asset management, Buyouts, Executive value, Fund managers, Fund performance, Institutional Investors, Joint ventures, Manager characteristics, Private equity

The Law and Brexit IV

Posted by Thomas J. Reid, Davis Polk & Wardwell LLP, on Wednesday, August 31, 2016

Tags: Banks, Brexit, Cross-border transactions, ESMA, EU, Europe, Financial institutions, Financial regulation, International governance,Mergers & acquisitions, Ratings agencies, Taxation, UK

Private Equity Portfolio Company IPOs and SEC Review: What to Expect

Posted by Paul M. Rodel and Benjamin R. Pedersen, Debevoise & Plimpton LLP, on Wednesday, August 31, 2016

Tags: Beneficial owners, Comment letters, Disclosure, Financial reporting, Fund managers, IPOs, Private equity, Related party transactions,SEC, Securities regulation, Transparency

Price Impact, Materiality, and Halliburton II

Posted by Allen Ferrell, Harvard Law School and Andrew H. Roper, Stanford University, on Thursday, September 1, 2016

Tags: Basic, Disclosure, Erica John Fund v. Halliburton, Fraud-on-the-Market, Halliburton, Information environment, Market efficiency,Market reaction, Materiality, Reliance, Rule 10b-5, Securities litigation, Stock mispricing, Supreme Court

D.C. Circuit Approval of the Constitutionality of SEC Administrative Proceedings

Posted by Adam S. Hakki, Shearman & Sterling LLP, on Thursday, September 1, 2016

Tags: Jurisdiction, SEC, SEC enforcement, Securities enforcement, Securities fraud, Securities regulation, U.S. federal courts