Three Essays on the Role of Information Networks in Financial Markets

Performance;Geography;Networks;Information dissemination;Portfolio management;Mutual funds

Gupta-Mukherjee, Swasti ; Management

University:Georgia Institute of Technology

Department:Management

关键词: Performance;    Geography;    Networks;    Information dissemination;    Portfolio management;    Mutual funds;   

Others  :  https://smartech.gatech.edu/bitstream/1853/16196/1/gupta-mukherjee_swasti_200708_phd.pdf

美国|英语

来源: SMARTech Repository

【 摘 要 】

Based on previous evidence that there are information heterogeneities in capital markets, three essays including empirical frameworks for examining the information processes that impact portfolio investments and corporate investments was proposed. The first essay considers information channels among mutual fund managers (fund-fund networks), and between holding companies and fund managers (fund-company networks). Results show that (1) fund-fund (fund-company) information networks help in generating positive risk-adjusted returns from holdings in absence of fund-company (fund-fund) networks; (2) fund-company networks create information advantage only when the networks are relatively exclusive. Superior networks seem to pick stocks which outperform beyond the quarter. The second essay examines mutual fund managerstendency to deviate from the strategies of their peers. Results indicate a significantly negative relationship between the managersdeviating tendency and fund performance, suggesting that the average fund manager is more likely to make erroneous decisions when they deviate from their peers. The third essay investigates the determinants of target choices in corporate acquisitions. Results reveal the influence of various factors, including information asymmetries, which may drive this behavior, including economic opportunities, anti-takeover regimes, competitive responses to other managers, and acquirerssize and book-to-market ratios.