Open Access. Powered by Scholars. Published by Universities.®

Business Commons

Open Access. Powered by Scholars. Published by Universities.®

Articles 1 - 3 of 3

Full-Text Articles in Business

The California Manufacturing Sector Stays On A Growth Path, Anderson Center For Economic Research Oct 2023

The California Manufacturing Sector Stays On A Growth Path, Anderson Center For Economic Research

Anderson Center Press Releases

No abstract provided.


Blockholder Mutual Fund Participation In Private In-House Meetings, Robert Bowen, Shantanu Dutta, Songlian Tang, Pengcheng Zhu Apr 2023

Blockholder Mutual Fund Participation In Private In-House Meetings, Robert Bowen, Shantanu Dutta, Songlian Tang, Pengcheng Zhu

Accounting Faculty Articles and Research

The Shenzhen Stock Exchange (SZSE) in China is unique worldwide in requiring disclosure of the timing, participants, and selected content of private in-house meetings between firm managers and outsider investors. We investigate whether these private meetings benefit hosting firms and their major outside institutional investors—blockholder mutual funds (i.e., funds with ownership ≥5%). Using a large data set of SZSE firms, we find that blockholder mutual funds have more access to private in-house meetings, and top management is more likely to be present, especially when a meeting is associated with negative news. Furthermore, when blockholder mutual funds attend negative-news meetings with …


The Information In Industry-Neutral Self-Financed Trades, Yashar H. Barardehi, Zhi Da, Mitch Warachka Feb 2023

The Information In Industry-Neutral Self-Financed Trades, Yashar H. Barardehi, Zhi Da, Mitch Warachka

Business Faculty Articles and Research

We identify Industry-Neutral Self-Financed Informed Trading (INSFIT) as stock trades financed by offsetting, equivalent dollar-denominated stock trades in the same industry. Approximately 37% of short-term mutual fund trading profits can be attributed to these trade pairs. Consistent with informed trading, INSFIT precedes unusually high media coverage for the underlying stocks. The trades underlying INSFIT are also larger as the release of stock-level news becomes more imminent. Both relative valuation and the hedging of industry exposure motivate INSFIT’s industry neutrality. While INSFIT positively impacts fund performance, active fund managers who execute INSFIT more aggressively obtain smaller trading profits per execution.