Journal article
Mutual fund skill and the performance of corporate acquirers
Journal of financial economics, Vol.110(2), pp.437-456
11/01/2013
DOI: 10.1016/j.jfineco.2013.06.005
Abstract
We show that the commonly observed correlation between institutional investor ownership and the success of mergers is partly driven by active stock picking. Several mutual fund stock selection skill measures strongly predict the post-merger performance of corporate acquirers even after controlling for possible shareholder monitoring. These findings are stronger for funds with characteristics more indicative of active stock picking. Moreover, firms held by funds with higher stock selection skills are more likely to subsequently become acquirers, suggesting that the mutual fund skill set includes the ability to identify acquirers with value-enhancing acquisition opportunities. (C) 2013 Elsevier B.V. All rights reserved.
Details
- Title: Subtitle
- Mutual fund skill and the performance of corporate acquirers
- Creators
- Amrita Nain - University of IowaTong Yao - University of Iowa
- Resource Type
- Journal article
- Publication Details
- Journal of financial economics, Vol.110(2), pp.437-456
- Publisher
- Elsevier
- DOI
- 10.1016/j.jfineco.2013.06.005
- ISSN
- 0304-405X
- eISSN
- 1879-2774
- Number of pages
- 20
- Language
- English
- Date published
- 11/01/2013
- Academic Unit
- Finance
- Record Identifier
- 9984380507102771
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