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

XiaoGang Bi and Danni Wang

Finance Research Letters, 2015, vol. 14, issue C, 104-110

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: Mergers & acquisitions; Institutional investors; Mutual funds; Monitoring role (search for similar items in EconPapers)
JEL-codes: G14 G20 G30 G34 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:14:y:2015:i:c:p:104-110

DOI: 10.1016/j.frl.2015.05.010

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