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

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  • Bi, XiaoGang
  • Wang, Danni

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.

Suggested Citation

  • Bi, XiaoGang & Wang, Danni, 2015. "Role of single largest investors: Examples of mutual funds and acquisitions," Finance Research Letters, Elsevier, vol. 14(C), pages 104-110.
    • Handle: RePEc:eee:finlet:v:14:y:2015:i:c:p:104-110
    DOI: 10.1016/j.frl.2015.05.010
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    References listed on IDEAS

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    Cited by:

    1. Liu, Ningyue & Laing, Elaine & Cao, Yue & Zhang, Xiaofei, 2018. "Institutional ownership and corporate transparency in China," Finance Research Letters, Elsevier, vol. 24(C), pages 328-336.

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    More about this item

    Keywords

    Mergers & acquisitions; Institutional investors; Mutual funds; Monitoring role;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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