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Preprint (Author's original)Open Access (License Unspecified), Open
Preprint
Institutional Trading Around M&A Announcements
SSRN Electronic Journal
20 Dec 2018
Abstract
We contrast the investment strategies of hedge funds and mutual funds around M&A transactions. We find that hedge funds increase their holdings of soon-to-be takeover targets by 7.5% during the quarter before M&A announcements. Conversely, mutual funds reduce their equity holdings in impending targets by 3.0% over the same time period. More actively managed mutual funds decrease their holdings in to-be targets to a significantly lesser extent than their peers. These results, which withstand several robustness tests, suggest that hedge funds enjoy superior access to private information or possess better skills to process public information
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Details
- Title
- Institutional Trading Around M&A Announcements
- Creators
- Eliezer M Fich - Drexel UniversityViktoriya Lantushenko - Saint Joseph's UniversityClemens Sialm - The University of Texas at Austin
- Publication Details
- SSRN Electronic Journal
- Publisher
- SSRN
- Resource Type
- Preprint
- Language
- English
- Academic Unit
- Finance
- Other Identifier
- 991020542327804721