Mutual fund's trading and Chinese mergers and acquisitions

Tools

Bi, Xiao Gang and Wang, Danni (2014) Mutual fund's trading and Chinese mergers and acquisitions. Procedia Economics and Finance, 14 . pp. 82-89. ISSN 2212-5671

Preview

PDF - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Available under Licence Creative Commons Attribution Non-commercial No Derivatives.
Download (298kB) | Preview

Official URL: https://www.sciencedirect.com/science/article/pii/S2212567114006893

Abstract

In developing capital markets dominated by individual investors, there is a potential for greater disparity in the interests of institutional investors and controlling shareholders and this has implications for the trading and monitoring activities of institutional investors in these markets, particularly around high impact corporate decisions. We examine the trading activities of mutual funds (as the largest institutional investor in this market) in corporate acquisition activities where there is potential for a wide disparity of interest between institutional investors and controlling shareholders. We find that Top Mutual Fund Management Company (TFC) have strong incentives to trade and realize profits over the event months for fear of price drop due to the mean reversion and herding effect in Chinese capital market.

Item Type:	Article
Additional Information:	This is Gold OA article
Keywords:	merger; acquisition; institutional investors; mutual funds
Schools/Departments:	University of Nottingham Ningbo China > Faculty of Business > Nottingham University Business School China
Identification Number:	10.1016/s2212-5671(14)00689-3
Depositing User:	QIU, Lulu
Date Deposited:	31 Jul 2018 08:53
Last Modified:	31 Jul 2018 08:53
URI:	https://eprints.nottingham.ac.uk/id/eprint/53185

Actions (Archive Staff Only)

Edit View

LoginAdmin