In this work we investigate the determinants of sovereign wealth fund (SWF) investments' stock prices. We focus on the location of the investment (domestic versus cross-border investments) and on the target industry (strategic versus non-strategic). We use a new dataset on SWF investments and...

We examine whether actively managed equity mutual funds trade on localised information events - syndicated loan covenant violations and changes in bank loan and entity ratings. Local investors achieve positive abnormal stock returns only around covenant violation periods rather than changes in...

We investigate investor reactions to merger and acquisition rumors. Employing a large and comprehensive sample of acquisition rumors, we find that the rumor target firms experience average cumulative abnormal returns of 4.78% over the three days around the rumor, and abnormal returns of -4.48%...

Shareholders' approval rates on M&A deals are informative, because they are predictive of the acquirer's post-merger operating performance. Since the passing of the deal is salient information while the specific approval rate is not, investors may misprice the detailed voting outcome due to...

This paper reviews the theoretical and empirical literature on the role of blockholders (large shareholders) in corporate governance. We start with the underlying property rights of public corporations; we discuss how blockholders are critical in addressing free-rider problems and why, like...

We study the relation between institutional shareholdings, private information in stock prices and the cost of capital. Using the probability of informed trading as a proxy for private information, we find that institutional ownership reduces private information in stock prices, and firms with...

In this paper we investigate the relationship between firm-specific investor sentiment, measured by applying text analysis to news stories published by Thomson Reuters, and merger and acquisition (M&A) deals announced by US-listed companies between 1997 and 2018. We find that a more positive...

This paper mainly studies goodwill as an intangible asset, and considers that goodwill and sales contain information about enterprise value. The results show that goodwill can predict the future return rate of China's stock market, indicating that investors in China’s stock market underact to...

Blockholder disclosure thresholds shape incentives for hedge fund activism, which are jointly determined with real investment and managerial behavior. Uninformed investors value lower thresholds (greater transparency) when the cost of trading against an informed activist outweighs the benefits...

We examine the effect of financial markets on the tone manipulation of earnings press releases by CEOs. We find that CEOs with high compensation convexity are significantly more likely to employ positive tone management right after recent high industry returns. Further analysis shows that this...