Mutual fund skill and the performance of corporate acquirers

• 成果类型: Article
• 署名作者: Nain, Amrita; Yao, Tong
• 署名单位: University of Iowa
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2013.06.005
• 发表日期: 2013
• 页码: 437-456
• 关键词: Mergers and acquisitions; corporate governance; Mutual funds; Stock selection

摘要

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.