We find evidence that firms commit to corporate social responsibility (CSR) activities to cater to mutual funds’ preference for CSR. To address potential endogeneity between firm CSR activities and mutual funds’ CSR preference, we use mutual fund mergers as exogenous shocks. We further...

Does information leakage in a target’s social networks increase its stock price prior to a merger announcement? Evidence reveals that a target with more social connections indeed experiences a higher pre-announcement price run-up. This effect does not exist during or after the merger...