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",

note = "Publisher Copyright: {\textcopyright} 2015 Elsevier Inc..",

year = "2015",

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doi = "10.1016/j.frl.2015.05.010",

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T2 - Examples of mutual funds and acquisitions

AU - Bi, Xiao Gang

AU - Wang, Danni

PY - 2015/8/1

Y1 - 2015/8/1

N2 - 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.

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

UR - https://www.scopus.com/pages/publications/84939268693

U2 - 10.1016/j.frl.2015.05.010

DO - 10.1016/j.frl.2015.05.010

M3 - Article

AN - SCOPUS:84939268693

SN - 1544-6123

VL - 14

SP - 104

EP - 110

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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