Institutional Cross-Ownership and Corporate Strategy: The Case of Mergers and Acquisitions

@inproceedings{Brooks2018InstitutionalCA,
  title={Institutional Cross-Ownership and Corporate Strategy: The Case of Mergers and Acquisitions},
  author={Chris Brooks and Zhong Chen and Yeqin Zeng},
  year={2018}
}
  • Chris Brooks, Zhong Chen, Yeqin Zeng
  • Published 2018
  • Economics
  • This article provides new evidence on the important role of institutional investors in affecting corporate strategy. Institutional cross-ownership between two firms not only increases the probability of them merging, but also affects the outcomes of mergers and acquisitions (M&As). Institutional cross-ownership reduces deal premiums, increases stock payment in M&A transactions, and lowers the completion probabilities of deals with negative acquirer announcement returns. Furthermore, deals with… CONTINUE READING

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    References

    Publications referenced by this paper.

    Institutional Crossownership and Corporate Strategy: The Case of Mergers and Acquisitions

    • Brooks, Chris, +3 authors Yeqin
    • Journal of Corporate Finance (2017),
    • 2017