Role of single largest investors: Examples of mutual funds and acquisitions

Xiao Gang Bi; Danni Wang

doi:10.1016/j.frl.2015.05.010

Role of single largest investors: Examples of mutual funds and acquisitions

Xiao Gang Bi, Danni Wang

Research output: Journal Publication › Article › peer-review

2 Citations (Scopus)

Abstract

This study investigates the effect of collective holding by the largest mutual fund management company in acquiring companies on acquirers' post-event valuation. We find that total holdings by mutual funds is not a superior proxy to predict the acquiring firms' post-event valuation; however, the collective holding by the largest mutual fund management company in acquiring firms is significantly positively related to the valuation of acquiring firms.

Original language	English
Pages (from-to)	104-110
Number of pages	7
Journal	Finance Research Letters
Volume	14
DOIs	https://doi.org/10.1016/j.frl.2015.05.010
Publication status	Published - 1 Aug 2015

Keywords

Institutional investors
Mergers & acquisitions
Monitoring role
Mutual funds

ASJC Scopus subject areas

Finance

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10.1016/j.frl.2015.05.010

Cite this

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title = "Role of single largest investors: Examples of mutual funds and acquisitions",

abstract = "This study investigates the effect of collective holding by the largest mutual fund management company in acquiring companies on acquirers' post-event valuation. We find that total holdings by mutual funds is not a superior proxy to predict the acquiring firms' post-event valuation; however, the collective holding by the largest mutual fund management company in acquiring firms is significantly positively related to the valuation of acquiring firms.",

keywords = "Institutional investors, Mergers & acquisitions, Monitoring role, Mutual funds",

author = "Bi, {Xiao Gang} and Danni Wang",

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AU - Wang, Danni

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AB - This study investigates the effect of collective holding by the largest mutual fund management company in acquiring companies on acquirers' post-event valuation. We find that total holdings by mutual funds is not a superior proxy to predict the acquiring firms' post-event valuation; however, the collective holding by the largest mutual fund management company in acquiring firms is significantly positively related to the valuation of acquiring firms.

KW - Institutional investors

KW - Mergers & acquisitions

KW - Monitoring role

KW - Mutual funds

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DO - 10.1016/j.frl.2015.05.010

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VL - 14

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JO - Finance Research Letters

JF - Finance Research Letters

ER -

Role of single largest investors: Examples of mutual funds and acquisitions

Abstract

Keywords

ASJC Scopus subject areas

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