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Buy low, sell high? : do private equity fund managers have market timing abilities?

Jenkinson, Tim; Morkoetter, Stefan; Wetzer, Thomas - 2018

When investors commit capital to a private equity fund, the money is not immediately invested but is called by the fund manager throughout an investment period of up to five years. This business model allows private equity fund managers to invest the committed capital at their own discretion,...

Persistent link: https://www.econbiz.de/10011906462

Sources of Value Gains in Minority Equity Investments by Private Equity Funds : Evidence from Block Share Acquisitions

Chen, Guojun - 2017

Using block share acquisitions made by private equity (PE) funds, we examine the sources of value gains in PE minority equity investments. We find that the targets in PE acquisitions, particularly poorly performing targets, targets with high R&D intensity, and targets whose boards have...

Persistent link: https://www.econbiz.de/10012974977

Earnings Opacity and Closed-End Country Fund Discounts

Chen, Feng - 2016

Closed-end country funds are interesting in that they have two sets of prices for the same underlying assets – the net asset value (NAV) of the fund holdings as measured using the underlying firms' stock prices in their home markets and the fund price at which the fund trades on a U.S. stock...

Persistent link: https://www.econbiz.de/10013008030

Evaluating Private Equity Performance Using Stochastic Discount Factors

Gredil, Oleg - 2020

We examine the performance of 2,790 private equity (PE) funds incepted during 1979-2008 using Stochastic Discount Factors (SDFs) implied by the two leading consumption-based asset pricing models (CBAPMs) — external habit and long-run risks — as their assumptions appear consistent with...

Persistent link: https://www.econbiz.de/10012845721

Creditor Rights, Claims Enforcement, and Bond Returns in Mergers and Acquisitions

Renneboog, Luc - 2016

By means of an international sample of cross-border mergers and acquisitions (M&As) involving firms with outstanding Eurobonds from the US, Europe, and other countries around the world, we show that bond performance around M&A announcements is sensitive to cross-country differences in creditor...

Persistent link: https://www.econbiz.de/10012996646

Probability Weighting and Asset Prices : Evidence from Mergers and Acquisitions

Wang, Baolian - 2017

For mergers and acquisitions with a small failure probability, the average decline in target stock price if the deal fails is much larger than the average increase that accompanies deal success. Probability weighting implies that the deal failure probability of such target stocks will be...

Persistent link: https://www.econbiz.de/10012973524

On the Effect of Merger Waves on Long-Term Aggregate Stock Market Valuation

Saidiev, Ulugbek - 2012

In this study, we investigate the effect of merger waves on the long-term valuation of aggregate stock market. Our empirical test shows significant positive relationship between the intensity of past, with four years lag, aggregate merger activity and the valuation of aggregate stock market

Persistent link: https://www.econbiz.de/10013101602

Does the Stock Market Expect Upcoming Merger Activity?

Saidiev, Ulugbek - 2014

The study introduces empirical evidence that there are statistically significant relationships between intensity of upcoming aggregate merger activity and the present values of the factors HML and SMB in the Fama-French three-factor model of assets pricing

Persistent link: https://www.econbiz.de/10013065679

Reverse mergers, shell value, and regulation risk in Chinese equity markets

Lee, Charles M. C.; Qu, Yuanyu; Shen, Tao - 2017

Using a comprehensive sample of reverse merger (RM) transactions, we examine the effects of China's IPO regulations on the prices and returns of its publicly listed stocks. During 2007-2015, unlisted Chinese firms paid an average of 3 to 4 Billion RMB for each listed shell, an amount exceeding...

Persistent link: https://www.econbiz.de/10011873081

Takeover protections and stock returns

Eisdorfer, Assaf; Morellec, Erwan; Zhdanov, Alexei - 2020

We argue that takeover protections decrease equity value and increase equity risk and stock returns by removing a … anti-takeover laws, both domestically and internationally. In line with our predictions, we find that distressed firms … experience a significant decrease in value and increase in returns and market betas after the passage of anti-takeover laws. Pro-takeover …

Persistent link: https://www.econbiz.de/10012419693