Mutual fund's trading and Chinese mergers and acquisitions
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, partic...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Elsevier
2014
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| Online Access: | https://eprints.nottingham.ac.uk/53185/ |
| _version_ | 1848798896865673216 |
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| author | Bi, Xiao Gang Wang, Danni |
| author_facet | Bi, Xiao Gang Wang, Danni |
| author_sort | Bi, Xiao Gang |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T20:27:04Z |
| format | Article |
| id | nottingham-53185 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:27:04Z |
| publishDate | 2014 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-531852018-07-31T08:53:43Z https://eprints.nottingham.ac.uk/53185/ Mutual fund's trading and Chinese mergers and acquisitions Bi, Xiao Gang Wang, Danni 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. Elsevier 2014-11-06 Article PeerReviewed application/pdf en cc_by_nc_nd https://eprints.nottingham.ac.uk/53185/1/3.pdf 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 merger; acquisition; institutional investors; mutual funds https://www.sciencedirect.com/science/article/pii/S2212567114006893 doi:10.1016/s2212-5671(14)00689-3 doi:10.1016/s2212-5671(14)00689-3 |
| spellingShingle | merger; acquisition; institutional investors; mutual funds Bi, Xiao Gang Wang, Danni Mutual fund's trading and Chinese mergers and acquisitions |
| title | Mutual fund's trading and Chinese mergers and acquisitions |
| title_full | Mutual fund's trading and Chinese mergers and acquisitions |
| title_fullStr | Mutual fund's trading and Chinese mergers and acquisitions |
| title_full_unstemmed | Mutual fund's trading and Chinese mergers and acquisitions |
| title_short | Mutual fund's trading and Chinese mergers and acquisitions |
| title_sort | mutual fund's trading and chinese mergers and acquisitions |
| topic | merger; acquisition; institutional investors; mutual funds |
| url | https://eprints.nottingham.ac.uk/53185/ https://eprints.nottingham.ac.uk/53185/ https://eprints.nottingham.ac.uk/53185/ |