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- W2242738771 abstract "This study investigates the relationship between institutional investors trading and the acquirers’ announcement effect of mergers and acquisitions (M&As). We try to test if trading behaviors of institutional investors predict M&A quality of acquirers. The sample firms are acquiring firms listed in Taiwan which announced merger and acquisition between 2003 and 2012. We use cumulative net buying of three types of institutional investors including foreign institutional investors, mutual funds, and local dealers to examine acquirer’s short-run stock performance around the announcement date of M&As. Methodologies of event studies are adopted and regression models are used to find explanatory factors to Announced Cumulative abnormal returns (CARs). The analysis of empirical evidences reveals three findings: First, cumulative net buying of institutional investors is positively related to the short-run stock performance of acquirers. Second, acquirers with increase in institutional holdings prior to the merger and acquisition have better short-run stock performance than acquirers with decrease in institutional holdings. Third, the relationship between cumulative net buying of foreign institutions and the announcement effect of acquirers is significantly positive while cumulative net buying of mutual funds or brokers has no significant relations with the short-run stock performance of acquirers." @default.
- W2242738771 created "2016-06-24" @default.
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- W2242738771 date "2014-01-01" @default.
- W2242738771 modified "2023-09-23" @default.
- W2242738771 title "Can Trading behaviours of Institutional Investors signal M&A Quality? Taiwan Evidences" @default.
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