Institutional Ownership Stability and Post-Merger Performance

Lin Lin ()
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Lin Lin: National Chi Nan University

No 4006543, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: Early paper argues that only independent long-term institutions are active monitors in the decision-making process of their investee firms. Using a sample of U.S. bids during1984-2011, this study finds that there is a significantly positive effect of institutionalownership stability on post-merger buy-and-hold returns (BHAR) and industry-adjustedreturns on assets (ROA) no matter whether they have concentrated holdings or not. Further, some institutions under public scrutiny (public pension funds, banks, and insurance companies in this study) seem to be more active in monitoring the post-merger performance than others. Empirical evidence also supports the relationship of institutional ownership stability and merger completion likelihood.

Keywords: Institutional ownership stability, Mergers and acquisitions, Institutional investors, Monitoring; Corporate governance (search for similar items in EconPapers)
JEL-codes: G34 (search for similar items in EconPapers)
Pages: 1 page
Date: 2016-08
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Published in Proceedings of the Proceedings of the 24th International Academic Conference, Barcelona, Aug 2016, pages 214-214

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:4006543

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