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Which Institutional Investors Monitor? Evidence from Acquisition Activity

  • Lily Qiu
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    This paper shows that the presence of large public pension fund shareholders particularly reduces acquisitions by cash-rich and low-q firms, and by firms seeking to ``buy growth'', after controlling for ownership endogeneity, firm-level governance structure, and other firm characteristics. When firms with large public pension fund presence do acquire other firms, they perform relatively better in the long-run. Other institutional investors have either the opposite effect or no effect.

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    File URL: http://icfpub.som.yale.edu/publications/2497
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    Paper provided by Yale School of Management in its series Yale School of Management Working Papers with number amz2497.

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    Date of creation: 01 Apr 2004
    Date of revision: 01 Jun 2006
    Handle: RePEc:ysm:somwrk:amz2497
    Contact details of provider: Web page: http://icf.som.yale.edu/

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